How to Profit from a Losing Trade?

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Good Morning!

I’m currently enjoying a short break with my family, so updates are a bit slower. But the beauty of the Stock Market Genius style of investing is that we don’t need to stay glued to screens, day-trading away at the expense of our actual lives. 🚀

As I vacation, it’s great to see some of my trades performing well—and this time, patience truly paid off.

Take DHI, for example. I entered the trade in mid-October at $180+, only to watch it drop to $160 shortly after. But the setup was solid, so instead of panicking, I doubled down and added more trades at the lower prices (if the market’s giving a discount, why not take it?).

Now, while my initial trade isn’t profitable yet, the later trades have already more than covered for it—each one earning over $1,000! 💵

This is the power of patience. Timing the market perfectly is almost impossible, but if your setup is sound, all you need is time to let it play out. Of course, losses can happen, and managing them is crucial—but letting winners run is where the magic happens.

For instance, my trades on COIN, HD, and JPM have been fantastic examples of this. The max loss? The premium paid for the trade. The upside? Virtually unlimited! (And yes, I do regret taking profits on COIN a bit early—hindsight bias strikes again! But onward we go! 💪)

That’s all from me for now. This week brings some key updates: FOMC minutes, unemployment claims, PCE, and other big economic data. 📊 I’ll be back with updates if I spot new opportunities.

Enjoy the journey, and remember—this is the SMG way!

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Alright! This should get you ready for the markets this week!

May Your Profits Grow!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.