Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.
We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.
Here are two takeaways from today’s call:
One Rule: Sell the Double
Discipline is crucial in any trading strategy.
Today, we had a brief discussion on why it is so important to "sell the double."
It’s the only hard and fast rule we have. But it’s critical. Without it, the whole thing breaks down.
Think of a double as a free swing at a potential multibagger. As long as we sell lots of doubles, the big winners will come.
For this reason, my number one objective with Breakout Multiplier is having a high double rate.
But doubles also help keep the lights on.
The options we are buying are incredibly volatile. Oftentimes we will get a quick pop allowing us to sell a double, but the stock fizzles from there and the remaining calls expire worthless. It’s important we break even on these.
Our recent trades in China act as a perfect example. By taking risk off the table after achieving substantial gains earlier this week, we've positioned ourselves well while reducing exposure.
This also allows us to redeploy that capital into new opportunities while we wait for our existing positions to develop.
New Trades in the "Amazon of South Korea and Southeast Asia"
These trades are part of the rotation into Consumer Discretionary theme, which continues to work as well as anything these days.
Coupang $CPNG and Sea Ltd $SE look more or less the same, coming out of fresh reversals.
It makes sense as they are both online retailers operating in Southeast Asian countries.
We’re betting both will resolve higher from these coils and continue their ascent in the direction of the underlying trend.
