Food Adventures and Lessons from the Market
Last week I flew from South Africa to Copenhagen for another foodie week with The Hungry Tourist.
It’s called the Best of Nordic Food Tour. Otherwise known as the Grand Viking Food Trail. It included restaurant excursions in Sweden, Denmark, and the Faroe Islands. We did food tastings at five of the best restaurants in the world.
We went to Frantzén in Stockholm and Fäviken in north-central Sweden. These are restaurants I’ve been wanting to go to for a while.
Both have multiple years of wait lists. Fäviken is pretty crazy; we had to take two flights to get there.
After Stockholm, we went back to Copenhagen and ate at Alchemist, which is one of the most hotly anticipated restaurant openings of the year. It opens in a few weeks and we were able to get a sneak peek thanks to The Hungry Tourist.
Then we ate at Noma, where they divide the year into three seasons and change the menu with the season. It’s currently seafood season at Noma — a celebration of Scandinavian seafood.
We finished the tour with a visit to the Faroe Islands, where we ate at Koks, a Michelin-starred restaurant. Whenever possible they serve locally sourced produce, which is pretty amazing when you consider the restaurant’s location. They serve both ancient and modern dishes, and they care about sustainability.
Visiting five of the world’s top restaurants in one week: beyond awesome. Now I’ve got some weight to lose. Totally worth it.
What Do You Need to Succeed in the Penny Stock Market
As always, I’ve been trading. I got a question from someone about how little I’ve been trading…
“Tim, you haven’t taken as many trades this week. Is it because of your schedule?”
No. I’m on a good time zone — the U.S. markets open in the afternoon here in Europe. I’m always willing to trade.
The morning dip buys that I usually like right near the market open have been happening later. Say, 10 a.m., 11 a.m., or even 12 p.m. Eastern. I’ve had a little difficulty adjusting. You know, that happens sometimes with some patterns.
I’ve been a little off on my dip buys the past couple of weeks.
I tried to dip buy a recent runner as it was dropping hard. I waited longer than usual as I was attempting to adapt to the market. It was also approaching multi-day support. I added to my position on a further dip — realizing I was too early on the first very small position.
I felt lucky to get out of it with a small gain. I was on the right track and made a little money — but missed out on the bounce that happened around noon.
You have to adapt. So, I’m trying to get better. Which brings me to this…
Learn the Lesson the Market Is Teaching
From each of the trades this past week, I received a lesson…
I recognized that I was on the right track — all four of them bounced. But in each case, I was too early.
Another pattern I’ve had to adapt recently is the first green day.
I love to hold first green day, OTC runners, with a strong news catalyst overnight. I think I’ve adapted well by learning to sell late market on the first green day. Not holding overnight but selling half or more into strength at the end of the day.
You have to learn to overcome your expectations. On a recent biotech company, I stuck to what I saw. I very quickly got rid of my expectations. When price action isn’t there you have to snap out of it — and fast. You adapt. You adapt or you lose big.
Next week the market might teach me a new lesson. I’ll keep adapting.
That’s all you can do, you know? If you’re too early, you keep trying. You shift your trade a little later. Let the fake out dip play out — so you catch the real one. If you’re too aggressive, take smaller positions. Be less aggressive.
Every trade you should be adapting to the market.
The Solution to Trading’s Moving Target Lies in Your Ability to Adapt
When you try a pattern and it doesn’t work, you keep testing. You take smaller positions. If it’s working later in the day, you try to trade later in the day. If it’s working earlier in the day, you trade earlier.
It’s important to remember this is NOT an exact science. You have to adapt. You have to respect this is a moving target.
The good news is…
Even though I’m testing, and even though I’ve been too early, I’m not losing much. I’ve cut losses or made small gains quickly.
You can potentially still breakeven — if not make small losses or take small gains — even while testing.
…you obey rule #1: cut losses quickly.
So, I’ve recognized this slight shift in the pattern. Some of my students have recognized it. And it’s good to talk about it.
Millionaire Market Wrap
I hope you spend the week studying. If you can carve out a couple of hours a day — over time — you’ll be surprised how much you can learn about trading.
Go get it. Life’s too short. This is NOT a dress rehearsal.
— Tim Sykes
Editor, Penny Stock Millionaires