What’s up with GW Pharmaceuticals (GWPH)? Here is the long and the short of it. (March 14, 2016)

by DAN GWPH 
GW Pharmaceuticals ( NASDAQ:GWPH ). This is why I wanted to mention this stock: This was a massive move here. They reported that they’ve got a cannabis based drug that was in phase three. It turns out it’s effective to treat a severe case of epilepsy. And so the stock just absolutely screams here, up double. Now, in the forum, here’s the trade, my suggestion is, I couldn’t buy this stock up here, but if you are long this stock, if this is your deal, you’ve got a 5 or 6 percent risk. You would want to set your stop just a little bit below $80.00, and that was today’s intraday low. If you’re going to be long this stock you set a tight stop. I SERIOUSLY doubt that the stock is going to fill the gap. But this is a big move and you could get a little pullback, you might. So if you’re long this stock you keep a very, very tight stop on this.

Now, there was a conversation in the forum, some were long this stock, which was really cool to see, but there were some others were just trading it. Somebody made a pretty good trade, they got out, I’m reading you this because it’s a good lesson in discipline; somebody else said, “Hey, so are you going to buy it again?” The answer was, “No, I can’t bring myself to get back in. The upside has to be limited to today I would think.. I just don’t want to give back the trade, but it is an amazing thing.” Now the reason I think that is important for you to hear. I mean really, really think about it, here’s a person who had a great trade on a stock. It’s NOT pulling back and so, “Oh my gosh! I’m going to get back in, I’m going to make even more money.” That’s the wrong approach. You got the trade and you made your money, move on. You don’t get to go relive the glory days by getting back in.

If you’re listening to this, and you are, ask yourself how many times you’ve made the mistake of making a good trade? Whether it was a long-term hold, or just a short-term swing trade, or even a day trade, you made a really good trade. You closed out the position and then you got kind of fixated on the stock and went back into it again; gave back some of your previous profits, hopefully not all of them, but you gave back some of them. You closed the position and you walked away feeling a little empty like, “I still made money on the first trade. But dang it! I should have just stayed away.”

What I’m telling you on GW Pharmaceuticals ( NASDAQ:GWPH ), if you made the trade you’ve got your trade, that’s it, move on, go home. If, for whatever reason you still want to be long on this stock, and hey, 120 percent move, who knows, this can be a $130.00 stock in the not too distant future. But you keep a stop just below $80.00 and then you can MAKE this trade. Again, just full disclosure, it’s not my trade, but I see some of you guys and you’re real gunslingers. You can make this trade and keep your loss contained by using a tight stop. But once you’re in, once you’re out, don’t go back in, the party is over.

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