Hey Market Pilot,
There are lots of tickers that make it on my watchlist, despite the fact that I will probably never trade them. Why? There could be several reasons. Maybe I am using the ticker as a market gauge, or I just don’t like how it moves, but I want to learn from it. Or maybe I like to watch them for the soap opera drama that naturally comes with the market.
I felt like breaking out my popcorn over the weekend when I was scrolling through my watchlist and came across a ticker I had been watching for a few weeks. Dogness (DOGZ, pictured below) had been making a really steady, but aggressive move to the upside. I was astonished at how well it was doing considering the rest of the market. But as I mentioned earlier, I had no intention to trade it long since it was already quite high and extended. I was interested to check in on it today and see how it was doing…
And then this is what I saw over the weekend.
DOGZ dropped over 60% in one day. Now that’s some drama to watch with a full bag of popcorn! I looked around for some news but didn’t easily come across any. So for now, we just have to chalk this up to the ruthlessness of the market and remind ourselves what can happen out there.
Don’t overweight yourself in one name for this exact reason. You never know what can happen, so mitigate risk as best you can.
Your Profit Pilot, TG