Hubert Senters here.
Let’s take a look at Palantir. So I am currently long this at $2, $22 and 425 and I added some more today on a pullback.
So this is an investment. I want to hold it for anywhere from 3 years to 10 years. It’s a big range. So I trade them entirely different.
Let me just walk you through it. This is a monthly chart of Palantir, PLTR. And number one on IPOs I like to buy at a 50 percent discount so.
What I’ll do is I’ll draw from the low to the high and this area from $22.72 to $26.96. I want to add a position on the speculation or the bet. I think thing is going to pullback and then bounce out of there.
That’s monthly chart then I come down here. I look at a daily chart and as you can see nasty three day sell off. That’s ok if it’s a long term trade. I don’t really care about that stuff.
I’m trying to build up a position at a discount so I’m long at $20, $22 and $25 so today I add it. Now, I won’t add it at the yellow line because it’s not enough pullback.
So what you have to do is you have to flip the switch. When you’re day trading it’s a slightly different and in some cases a totally different mindset where you’re long term investing you’re buying pullbacks.
You actually wanted to selloffs so you can get it at a discount and then sell it at a higher price. So I added some right here today at the close and if it drops again down here to the cloud I’ll add some more.
And I’ll also do it if it goes back up to it but mainly what I’m trying to do is I’m trying to only add it on down days in that way I get a discount.
So if I’m always adding to the pullbacks I’ll lower my basis of costs so then when my targets go to hit obviously, I’ll make more money.
And when I’m doing my targets I can liquidate some along the way if I want to. Obviously, it’s a call but you just have to make it in real time.
And then I reverse that so what I do is go on the fib from the high to the low. I know it’s probably going to bounce to at least $31 to $34 so I’m looking at that to potentially take some off the table. Take my risk off the table.
And then I can hold the rest of it because then my risk would be a whole lot lower. But if I’m holding it for three to five years or three to ten years obviously I’m just going to be adding to the position on pullbacks.
Now, I do have a hard stop loss on it if it breaks this $17 area I will be gone. But anyway, I thought you might think useful so I’m sharing it with you.
I’m going to be one of the guest speakers at the Wealth 365 Summit. I’m going to teach you Three Powerful Trading Setups With Only 3 Clicks Of Your Mouse. First name, email address and optional telephone number and then click Claim Your Free Ticket.
Good luck. Hope it helps. See you on the next video.
Hubert.
