RGBP Review: Plan Your Trade and Trade Your Plan

by | Nov 9, 2021 | Trading Lessons

Looks like we’re in for another awesome week of trading this week!

After dropping my ‘To the Moon’ watchlist on Sunday, I got straight into it on Monday morning. And guess what I traded? The top name on the list.

But before I get into the trade recap…

My Nearly 100%+ Moon Jumper Pick

For those of you dedicated enough to attend my webinar, you might remember that my number-one Moon Jumper pick was helium (HNT). 

I guess I should say … you’re welcome? From bottom to top, HNT was up almost 100% over the weekend, making for a SICK Moon Jumper pick. 

Congrats to anyone who banked on HNT! Now, let’s get into the trade details…

Why I Went Long on RGBP

Regen BioPharma Inc. (OTCPK: RGBP) was at the top of my last ‘To the Moon’ Watchlist for a reason — it’s a textbook OTC breakout. 

RGBP surged almost 25% last Friday, and it’s up over 70% in the past five days.

Monday morning, after three days of consolidation in the chart, I thought RGBP could be headed to the moon.

I was looking for a strong move into the $.03s. Here are the main factors I was considering:

  • The price action had proven itself in the past. RGBP is a former runner that has shown it can blast off under the right market conditions.
  • The chart held up against initial Level 2 selling. There was an ask block trying to sell 500,000 shares, but the chart held steady. To me, that was an early indication of strength.
  • I knew the pattern I was looking for. I was hoping to see a dip-and-rip pattern first thing in the morning, and that’s exactly what we got.

Once I saw the dip-and-rip candles play out, I needed the chart to hold green. It did, so I sent some orders to get filled around 32 cents. 

The fills were slow. And while I was waiting, I saw some big bids coming in — which only strengthened my conviction in the setup.

I flipped through a few charts, and by the time I got back to RGBP, it had moved up to $0.335. 

Trying to add to my winner, I sent a few more bids. Little did I know the entire trade was about to turn on me…

When a Trade Goes South

Unfortunately, my RGBP trade turned into a lesson of cutting losses quickly rather than a story of monster gains. 

Around 9:50 a.m. Eastern, RGBP broke a major uptrend I was watching. I didn’t like that one bit.

This is the point in a trade where the importance of risk management really comes into focus. 

As soon as I started to see the cracks forming in the price action, I canceled my orders to add more shares. 

And just moments after that — a HUGE red candle. 

So what did I do? I immediately cut the entire trade for a TINY loss. 

I didn’t get attached to the position. I just let it go completely. On to the next one!

Conclusion

When a trade starts feeling shaky, go back to your initial trading plan. And if the chart really starts turning on you, cut your losses immediately.

RGBP is a perfect example. I made sure to cancel all my open orders and start cutting shares as soon as the price action dipped below my cost basis.

Sure, I wish this was a huge winner. But I’m proud of how I managed my risk in this trade. Sometimes that’s just as important as hitting home runs.

Until next time,

Matt Monaco

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