One more time with DraftKings ($DKNG) (May 29, 2020)

by DAN DKNG 
I was looking at DraftKings ( NASDAQ: DKNG ) and if the stock doesn’t print a higher high here relative to this 39.60 level then that would be kind of the first yellow flag in this trend; because the stock has been printing higher intraday highs, it has been closing higher every day too, but it has been printing higher intraday highs AND higher intraday lows every day.

Just now, as I started this, this stock ran up to 39.85, which is a higher intraday high; so the hits just keep coming here on DraftKings ( NASDAQ: DKNG ). I would like to go to another stock because this is getting kind of boring but I am getting a lot of requests just to keep this trade going so I will.

Look, the stock just continues to move higher. Personally, maybe I am the only guy, but personally I have found these types of trades difficult to hold; because they are making such good money. It’s like the old Catholic in me starts feeling guilty about making so much money so my tendency is to want to sell. And then as soon as I sell then the stock goes up more and then I feel like I have got to buy it back; lather, rinse, repeat, you keep doing this.

Well, the way I have found to kind of deal with that, to deal with my inner demons of needing to sell and book profits but also learn from history and say, “You know, stocks like this that are moving, they just kind of keep moving. So why don’t I just learn to ride the lightning on this stuff.” What I do is, I will trade in fractions. I will keep a core position, stuff that I am thinking; I am going to ride this thing until the last dog is dead. Then I will trade around that; I will buy some more then maybe I will sell if I need to scratch that itch.

I am always holding some stock; with the idea, seriously, if a stock like this is moving up I will even say, “You know what? I may be up 20 percent, 30 percent on the trade but I will be damned if I am going to sell this first chunk of shares until I start losing money on it.” You are trading around the rest of it and then you are just keeping that core position, literally a core position that you are just going to hang onto unless the stock actually starts costing you money.

What this does is it gives you staying power. It gives you the power to stay with a position when you are normally scared to death and you just want to sell it. Just keep it going with DraftKings ( NASDAQ: DKNG ), we’ll pick up on this next week and hopefully, the thing opens up at 42.00 and runs all the way to 50.00; yippee ki-yay.

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