Hey, Traders,
I want to be real with you guys about what happened with one of my trades last week.
Thursday afternoon, I spotted a clean breakout on Springview Holdings Ltd (NASDAQ: SPHL) around $20.
It was my kind of setup, with a late-day push, good volume, and fast motion.
I got in and it started working right away.
It ripped through $22, then $23, $24 … and even touched $25.
I was in the zone. It felt great!
But here’s the part I’m not proud of: I didn’t sell.
Not even a small piece.
I figured, “Hey, this thing’s strong, maybe we see $26, $27…” and I got greedy.
I broke one of the biggest rules I’ve learned from my mentor, Tim Sykes — sell into strength.
Lock in profits. Don’t get cocky.
And what happened the next day?
You probably saw it: SPHL tanked.
It gave back the whole move and then some.
I turned what could have been a solid win into a break-even — or worse, depending on the exit.
Here’s how NOT to repeat my mistake.
Bigger Than Your Head
This is one of those trades that really stings because the entry was spot on.
But I let confidence get in the way of discipline.
I didn’t stick to what’s worked for me in the past.
I didn’t protect the win, and the market reminded me exactly why that rule exists.
It doesn’t matter how long you’ve been trading or how well you know the patterns.
The second you start thinking you’re smarter than the market, you’re setting yourself up for pain.
Looking back, I had plenty of chances to take profits:
I should’ve sold some at $22, maybe more into $24, and then left a little on in case it kept running.
That would have been the smart move. It’s what I’ve done before.
But Thursday? I was swinging for the fences.
Mea Culpa, and So On
The truth is, you don’t need to nail the top to be a successful trader.
You just need to take the “meat of the move,” as Tim often says, and get out while the stock’s still showing strength.
Because once the momentum fades, it can unravel fast — just like it did with SPHL.
I’m not sharing this because I enjoy losing, either.
I’m sharing it because it’s important to be honest, and I know a lot of newer traders are watching these plays and learning from what we do.
Sometimes the best lessons come from the trades that go wrong.
So, take it from me: When a trade starts working, don’t freeze or wait for some magic number.
Sell. Into. Strength.
Take a little off the table; give yourself a cushion.
It makes all the difference.
SPHL was a great opportunity … I just didn’t respect the rules.
But I won’t forget this one, and I hope you don’t either.
Stay ready,
Jack
