Review: 01/08/2015

Ticker: BIND

 

       

I screwed up pretty bad on this trade and turned a winner to a complete loser. I was notified by GSP in the chatroom at around 9:38am about the gap and it broke the first 2 minute highs and ran. It ran too fast for me, so I waited for a retrace before buying in. GSP got in @ $7.50 which demonstrates the power of doing homework which, I didn't.

Take a look at this chart. When it broke out of the prior resistance @ $8.45, it seriously looked like it could go to the moon. The orange arrow was when I took my entry. This chart shows why I wanted to take it. My plan was to get out at the top resistance @ $10.75 or high $10s.

GSP made the call at around open, but it was way too fast for me. So I waited for a retrace. He ended up scaling out towards $10 while I foolishly held. Now looking back, I should have BOT partial positions at around $8.62 which was the support and then went full once it broke the second lower high after its first move. My entry was @ $9.20 as soon as it broke the lower high after its first leg up. My stop here was $8.44 and at this point, I thought this stock could just go up the high 10s. So my target was around $10.75.

So it ripped up higher and I got greedy. I didn't sell out because I thought I didn't make enough profit. I did not change my stop because I was too confident. At 11am, it was keeping a uptrend line so I just held it. When it ripped higher, I thought I was safe, but it just collapsed down. I ignored the every bearish sign in hopes of it bouncing back and I got burned hard. I also got a warning from VinnyB at around 11:45AM warning me about this stock, but I was too stupid to listen. When it collapsed at around $12, my stop didn't trigger, I had enough and marketed out @ $8.34.

Note: This shows the power of greed and how $0.80 gain turned into $1.03 loss. I let some rules slip by and I paid the price heavily. Some things to take from this is to take profits when up because you can always buy in lower. I couldn't have because of my broker, but it is still a lesson to keep note.

Ticker: MELY

So, this is a stock I was waiting to sell for a long time. I was lucky that it got out of $0.0001 state, but I was stupid not to realize the amount of potential it had. One lesson I learned from this is if you are up 100%, you fucking sell. 

I original purchased this stock thinking that it might just tick to $0.0002 the next day since the Level2 looked nice. The only problem was, the only market maker left in the ask was VFIN or VNDM with only 10k. I bought on December 18th @ 0.0001. I waited nearly a month for the volume to pick up for 100% gain. The trouble was, when I was waiting, I was stubborn about my limit and wanted to sell at $0.0003. However, it was this when I remembered how illiquid pennies could be and $0.0002 was 100%. So, I realized that any stock that goes above 100%, I should just sell immediately before greed kicks in. Also, if I sold, I could always buy back. 

Note: I was stupid for buying so early. I should have waited and let my money go elsewhere. However, I did learn how to play these kinds of charts. One just has to be patient and read the volume. As you can see, volume picked up to above 200 million at around January 5th and the pressure kept coming until it broke though today. When volume is that high, it means something is definitely going on with the stock, especially at $0.0001. I couldn't play because my money was tied elsewhere, but if it was free, I could have made 100% for nothing. I will keep watch for these kinds of stocks.

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.