Q&A: ALL IN Mentality

Putting all your chips on the table

One of the more frequent questions that I get from PMs through Facebook is:

Is going all in part of the teaching of the course? 

Well, it was discussed briefly. It was not something that the mentors prodded or told us to do. But the philosophy of it was discussed. 

Here is just one robot's take on it. 

It takes a special kind of crazy to go ALL IN. Even more if it is in speculative or basura stocks. But I wouldn't have it any other way sometimes. Especially if my scanners are seeing that there is a perfect setup or there is an abnormally large volume of buying in one particular breakout. The sense of accomplishment in seeing your whole port, not just a portion of it, go up by X% sends chills even in my metal heart. 

Usually before going into an all in trade, my mainframe will do a quick checklist to make sure that going all in will not be disastrous.

• if the daily volume can accommodate the amount that will be bought or sold. Meaning, if I enter or exit the trade will it move the stock by more than one or three flucs? 
• where the potential resistance and supports of the stock will be. Making the needed calculations in real time might need some time, so doing the appropriate preparations and planning before trading starts is essential
• will I be able to monitor the stock movement all throughout the day? This is vital since basuras sometimes have very wild swings intraday. A perfect example and one of my batch's new mantra: REMEMBER DAVIN!

CAUTION: Going ALL IN is not for everybody. You must be able to execute your cut loss or stops without mercy. This will ensure that if and when things go wrong, you will not lose most of your portfolio.