Recap: 01/09/2014

Ticker: ATEN

I saw this chart on scan and thought it could run to at least $6.00, so I took it as a swing.

Took my entry in the morning @ $5.45. I was stupid because I did not notice the amount of volume this thing had. There  was no way this thing could push higher. My stop was low of day so I waited until it formed an ascending triangle. However, it just faked the bulls out and fell. I still think this thing is primed to run once it gets some volume so I will be patient. My stop is below low of day @ $5.37.

Note: Remember to always look at the volume before buying in for a gap play. It has a large influence on how the chart could perform. If I had noticed, I would not have purchased the stock at almost its highest point. If the volume is high and the stock is popping, it is okay to buy at market. If it is low like this, try to be more patient and wait for it to retrace.

Note: Did you notice that huge volume spike at 11:00AM? It is very strange and saved this stock from going all the way down.

Please let me know if you have any comments or opinions. I would like to know if you have spotted any mistakes in my logic.