It's more about taking a holistic view to trading. In this...

It's more about taking a holistic view to trading. In this model, it's all based on NXM hitting the $1 rocket mark.

Scenario 1 is buying NXM 200K shares @ 10 and HODL till $1 rocket.
Scenario 2 is buying NXM 200K shares @ 10, profit taking 25% of holding @ 40. HODL 150K shares to $1 rocket and 25% profit taking remains in cash because you haven't found a good setup.
Scenario 3 is buying NXM 200K shares @ 10, profit taking 25% of holding @ 40. HODL 150K shares to $1 rocket. 25% profit taking goes into XYZ and XYZ tanks to zero.



Now your 25% flip remaining in cash is a 15% lower overall profit at $1. Your 25% failed flip results in an overall 25% lower profit.

Your 25% flip only needs to make 1.5 bhags to get back to the equivalent of HODL the whole 200k parcel (I didn't include the spreadsheet as it was getting a bit messy to explain clearly through this medium in my current state, gotta love footy and fight day). I also ran a sell 25% NXM @ 40 and then buy back @ 60 for the run to $1 which resulted in a total value of 183K.

The particular stock is irrelevant as long as the setup is good, and there is no need to reinvest straight away.

Now taking the holistic view and assuming $1 rocket is achieved, if at the initial buy you were told that for a 20K investment you could make a minimum 130K profit, would you be happy? I would, anything above that is just icing on the cake. As they say, eat the cake and leave the cream for someone else.

I accept that I will rarely time it perfectly to buy the exact bottom and sell at the exact top. Out of the couple of hundred trades I made last year, only one was the perfect buy bottom sell top combo. I'm happy with collecting 50-80% of a move, and then look for another high probability setup.

GLTAH