For some weeks now, I’ve been discussing the idea that you need to take profits in shorter-term trades.
The market has had some turmoil lately, more so for yesterday, and it has also had a series of down days making for limitations for general gains.
Even for the best of surge stocks, taking profits earlier than planned can provide you with gains and the ability to avoid losses.
That said, while yesterday was terrible, each of the new stocks on the Watch List still has plenty to go this week – at the right prices.
Now, let me show you how I traded some of my shorter-term stocks during yesterday’s action…
Monday’s Not So Scary Session
Monday was a bloodbath for the market.
The Dow was down 800 points by noon, and nearly every stock traded lower.
But I made money on the day. Here’s how…
As I’ve mentioned before, the market is very choppy right now.
Breakouts tend to be short-lived, so my trading has become much more short term over the last several months.
So, I was only in two positions going into the weekend.
The first was Monday.com (MNDY) – a high tight flag setup I told you about on Thursday in Traders Daily Direction.
I bought at $375.00, and the stock quickly climbed to $391.
The next day, it turned around.
I was stopped out Monday morning at $357.44 – a loss of 4.7% on the trade.
But I made 3X that on Vicarious Surgical (RBOT).
RBOT was a SPAC (special purchase acquisition corporation) – D8 Holdings Corp. (DEH).
Backed by billionaire Bill Gates, the company announced plans to buy Vicarious Surgical months ago.
Like all SPAC stocks, it was trading for $10 per share. So, I set an alert to let me know if the stock got above $11.
It finally triggered on Thursday when it was announced the deal had gone through.
Volume flooded into the stock, and it closed the week at $11.57.
Monday, the stock opened at $12.35, and it traded over $13.00 in the first half-hour.
Given the whipsaw nature of stocks and the fact that the major indexes were all down huge, I started taking profits.
I sold the whole position between $12.50 and $13.05.
The red arrows on the 15-minute chart above show where I sold. I netted roughly a 13.6% gain over two trading days, which more than offset my 4.7% loss on MNDY.
By 10 a.m., I was fully in cash. And I will stay there until I see a new setup.
D8 Holdings (soon to be Vicarious Surgical) could be a new opportunity. The stock gapped higher and held up well during Monday’s selloff.
But I need to see further confirmation in the chart.
I will be keeping an eye on this stock over the coming weeks. If shares can stay above the $12 mark, this one could have a lot further to go.