Well, I guess, trading small cap stocks isn’t just for me. It is not just because of the big hit I took on KAZ (I have lost -13% in that trade). I guess the mane reason is the lack of liquidity and the need to be patient. And by patient. I mean – really patient.
For most of the people that would be the best way to invest in the markets – you research fundamentals, you dig for information, you compare long-term charts and competition, and then you make the move. You invest in several companies with the idea to hold this positions, at least 4-6 months.
For me, as a trader, this route doesn’t work – my capital is my working tool, and I cannot afford stash it away for half of the year.
So, now I am back to trading options, which are great tools to achieve higher return with well managed risk.
The chart below indicates, that the pullback we witnessed for the past 2 weeks may well be over, and some kind of rebound is going to happen soon. And by buying 3 Google Calls@Feb for 1.98$ I am betting that it has already started.
My stop is below 525$. My Targets are 550 and 570 (gap close)
