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Simple, Boring Trading — Huge Results.

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JULY 21, 2023
 
   
SCOTT WELSH’S ANATOMY OF A GREAT TRADE
If At First You Don’t Succeed… (rewinding the ISRG IPO)
 
 
As we know, using a long-term trading perspective on new and exciting stocks can pay off.

While it’s easy to think that we need to be running highly-complicated scans and constantly watching breaking news on our phones to catch The Next Big Thing, it’s not true.

We can catch monstrous winners in a boring, simple way.

When looking to trade new stocks, stocks that are recent IPOs, we’ve discussed that we first need to wait for a 12-month simple moving average (SMA) to print on our chart. 

Then we need two consecutive closes above that average. 

And then we boringly just stay in the trade until price closes below our SMA.

The past 2 Fridays in these pages, we saw this work nicely on PANW and SCHW when they were brand-new:

 
However, it doesn’t always work perfectly the first time. With new stocks, sometimes it takes the market a while to decide they’re superstars.

Take ISRG (Intuitive Surgical), for example. It was an IPO back in 2000.

In June 2001, the SMA showed up on our chart. In December 2001, we got a possible entry.

 
 
Unfortunately, it wasn’t ready yet and Trade #1 would have been a small loser. But it’s good to stick with new stocks.

Trade #2 would have been a slight winner from July 2003 to about June 2004 (+12%). 

If we kept ISRG on our radar, though, we would've been deeply rewarded. 

Trade #3 starting in July 2004 and closing a little over 2 years later was a monster, hypothetically returning over 400%.

And after that, Trade #4 running from April 2007 to about July 2008 would have made 100% more.

When trading small stocks, not everything happens right away.

But when it does happen, it can be huge.

Happy trading,

— Scott Welsh

 
MICAH LAMAR
All Penny Stocks Are Trash, Right? Think Again.
 
 
When the topic of penny stocks arises, it's easy to imagine risky ventures and speculative gambling rather than serious trading.

But, it might surprise you to learn that one of the world's most successful companies today started out as a humble penny stock — and even remained under $1.00 per share as recently as 19 years ago.

Despite garnering a cult following in the 80’s and 90’s, the trajectory of this company was vastly different from its current powerhouse status.

Yet, something remarkable happened to this company in the late 90’s. A transformation was underway, a vision taking shape behind the scenes. Slowly, but surely, the pieces fell into place, and the stock started an upward journey, rising higher and higher, with no sign of stopping.

Yes, you've probably guessed it by now. This company is none other than Apple Inc., the revolutionary tech giant founded in a garage by Steve Jobs, Steve Wozniak, and the lesser-known Ronald Wayne in the 1970s.

Apple's turnaround began when Steve Jobs returned to the helm in 1997, but even then, it took seven years for AAPL to climb above $1.00. However, since that pivotal moment, the company has been on an unparalleled trajectory of innovation, redefining the tech industry with every groundbreaking product launch.

Today, not only is Apple the biggest company in the world by market capitalization, but it also holds the title of the most profitable company by a significant margin.

The remarkable journey of Apple serves as a powerful reminder that dismissing penny stocks outright may lead to missing out on hidden gems. Innovation and vision can turn even the humblest beginnings into resounding success stories.

So, here's a lesson to remember: never underestimate the potential of a company that embodies innovation and embraces a compelling vision. Apple's extraordinary story demonstrates that betting against such a visionary leader can be a costly mistake.

Now if you’ve read this far, you probably have a feeling of having “missed out” on AAPL’s incredible growth.

You might even think it’s too late to get into this storied stock.

But as an avid researcher and investor, I've dedicated over a decade to studying Apple's stock — and I can tell you that this is far from the truth.

Because my decade plus of research has led to me identifying certain "profit cycles" that AAPL regularly goes through.

If you’d like to hear more about my discoveries and how you can potentially capitalize on Apple's ongoing growth, I invite you to click here.

Don't miss the chance to be part of the next chapter in Apple’s epic history.

— Micah Lamar
   
 

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