2nd: Terrible Trading

Summary

I had a head start again in the morning and turned it into shit. I think my plans for the morning has become a bit better while I don't have any plans for the afternoon. If I want to play the afternoons, I must start scanning for stocks that I think will have a run in the afternoon. Stocks like SRPT where the daily chart didn't look half bad with a solid thesis behind it.

A trade with a thesis is something VinnyB always stresses and I agree. I think I am not doing well in the afternoon is because I never made any plans for those trades. They are ALL random! 

What will I do?

After today's loss, I have developed an aggressive money management strategy that is based on my current account size. It will help push the pace of my trading progress and help me finally define my risks/rewards where before I had nothing.

I will only play stocks I have a plan on. No more afternoon plays with no solid plans. I know I said it before, but now I must mean it. I will fail if I continue what I am doing and my account will reflect it. I have been reviewing my watchlist and some have been working. I will continue to post these and improve it as time goes on. 

I have discovered some of my ways to waste time and will eliminate them from my life. Time is a precious thing and I must use every second productively.

Ticker: DRYS

I shorted cause I just thought it was an unwarranted pop. There was no plan here.

Note: There was no solid plan here. It's a type of chart I should stay away from. It took back the money I made from it.

Note: There are times I know I am wrong and the chart gives me an opportunity to exit. I must take those opportunities.

Ticker: BRCD

I had no plan here and entered poorly. I got out because I realized that.

Note: SSR was on so I should have been patient when I missed my opportunity in the first minute. If I miss a trade, then I miss a trade. I must not chase it!

Note: I must realize that a bad entry is no go. If I miss a trade, then I simply miss a trade!

Ticker: ULTR

I saw an ABCD pattern here and decided to give it a shot. This was NOT a good play because the 15 minute chart did not support it. The pattern was broken and I still didn't get out.

Note: I noticed that ABCDs work when Cs last longer. This is because it has a longer time to consolidate. The plays I play are usually good shorts.

Note: I was given a gift by the chart to get exit and I didn't take it like an idiot. I was there hoping and that got me killed. I must realize when my idea doesn't work to GET OUT!

I got killed for playing the lull.

Note: I was looking for a short, but got killed. It wasted 3 hours of my life and had no volume. I shouldn't play this bullshit.

Note: My original plan was to see $0.55s peak, but I just rushed into the trade. I must WAIT for the trade to come to me!

Notice a mistake? Let me know below!

8th, 10th: Don't Fight Trend

Summary

I have a big problem on my hands and that is not following trend. If a stock is grinding higher, then it will probably want to go higher. I can't make assumptions of it wanting to go lower unless it does it. Today, I fucked up big time because I flipped my position.

Everything was pointing up and I was ready to go long. When the bars were forming, I just had a glimpse of a perfect scenario and then everything switched. I blinded myself by wanting to see something that wasn't there.

I fought the trend and lost. 

Ticker: SPWR (02/08/16)

Played it okay.

Note: Need to be on the lookout for the bigger picture. As you can see, it worked the rest of the day.

Ticker: SCTY

 

The daily looked okay for quick pop and fade, wash and recovery, or grind and recovery.

Note: When trend held, I was looking to long it in the beginning, but it moved very slow.

It dipped and held a higher low compared to pre-market. Then it grinded up and broke out. My initial idea was to long, but then something came over my head at 11:00 which made me think it would be a short. I should have known better than to fight a trend though.

Note: I thought the grind was slowing down and beginning to turn at 10:55 when I was looking for the long. Then I just decided to switch my bias to short. The problem here is was that the longs won the 10:55 bar.

Note: Some psychology here is what would I do if I were in certain points of this trend. In the morning, there was a gap down and the initial pop was a sell off for those who wanted to get out. As soon as it held the higher low, as a new investor, I would not be scared unless it went below $18.20.  There was no lower low at any point so I would have been okay with it grinding. 

Note: DON'T FIGHT THE TREND! 

Got something to say? Say it below!

28th: Poor Execution

Summary

Step by step I am starting to understand the trades I want to take. However, I must be able to execute efficiently. Today was not one of those days and I felt it. I started to write my strategy out and will tweak as I go. There is much to do.

Ticker: NOW

How I played this.



Note: My risk was definitely too high which affected my emotions during the trade. I need to be willing to risk the amount I want and be okay with it.

Note: This was scalp play which is okay, but I really want to get an idea of the bigger picture to get the big moves.

Note: The high of candle after my entry should have been my risk after the flush because I would have been okay with it.

What I missed right under my nose.

Note: I gotta focus more.



Ticker: NEOS

This isn't even what I charted out originally.

Note: Just horrible charting on my part with no set risk. This is not the way I want to trade.

Better representation of what was going on.

Note: It looks much better and shows me that this is not a trade I should be looking for,

Got something to say? Say it below!



Twentieth: Learning

Summary

After acquiring all these new tools, I discovered that I know nothing which means I have a lot of learning to do. The time it takes to learn  just makes it so there is no time for anything else which is great! I am no longer distracted with random things because there simply isn't any time for that. I just have to take it one day at a time because trying to do more will just overload me. 

I have started to get back into the swing of things, but I don't feel 100%. It's probably because I haven't been trading for a while and I just need more time to get back into it. The one thing I can say that I don't like is the fact that I am basically in front of the computer all day now. It's something I wanted to take out of the equation, but it is more prevalent than ever.  

I also must be looking at more charts because I am finding myself totally unprepared in the morning. Whether it means to post my watchlist on here or not, I must be prepared or else I will have nothing to trade.

Ticker: ZFGN

 

I thought I saw an ABCD pattern, but it turned out to be more of a consolidation before it went lower.

Note: I learned that it is better to be waiting to buy dips off a more solid trend than what I saw. Thinking about it now, there was no uptrend, but just a channel which was just a consolidation. Next time, I will be looking out for an uptrend before calling an ABCD and buying. 

Note: I should not have just market stops on fast moving charts or charts that have big spreads. That will kill me in the long run. 

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.

Tenth: History Lesson

Summary

Based on my previous experience, I have stuck to the notion that anything can happen in the markets. With this, I have forgotten a lesson that history tends to repeat itself. So even though anything could happen, I need to remember that there is a greater chance that something will happen again if it happened before. That's the whole game we are playing; we are betting on setups that have worked in the past. It's the only edge we got. 

Ticker: KMI

 

I was a fool for not looking at the past.

Note: It was VinnyB who alerted me to the history of this chart and I noted that it could have been a good short given the history. However, my long bias got to me after I couldn't resist how good the daily and intraday chart looked.

How the chart looked in the daily. I think I would have preferred a higher gap up to play the breakout.

Note: The daily looked good so I immediately had a long biased for this stock. 

Point of interest #1: This is an area I should be watching intraday to see what happens. 

I fucked up my entry initially because I was stupid. I missed the ascending triangle and tried to get in on the dip. My add was decent, but the chart just didn't work. I should have bailed as soon as it started forming a descending triangle. I say this based on the previous history of the chart.

Note: I could have been more active with this chart and got out earlier. However, since I was long biased, I was hoping for a saucer pattern. I haven't seen a saucer pattern in this market in a long time, so that is how bad my bias got.

Note: I expected the dip under $17.20 after seeing it so many times before. As long as it defended and bounced back, I was okay.

A more macro view of the chart.

Note: The first point of interest, $17.35,  got stuffed which meant it was weak. However, it got passed it later on.

Point of interest #2: Anything lower than this price, the setup is broken. 

Note: Notice how the volume grew a little higher, but the bar was lower high. This was the signal to GTFO.

Ticker: SWHC

 

This chart was begging for a retrace.

I got burned because I did not calculate the risk vs. reward on this trade. This was a low risk no reward type of chart. I should have waited for more of a parabolic. This type of setup works better, if the setup was a descending triangle.

Note: I should be waiting for better opportunities.

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.

Ninth: Didn't Work

Summary 

I gave the setup a shot and it just didn't work.

Ticker: SUNE

The daily chart was nicely set. This gap could have been very nice if it continued because it also broke the previous resistance @ $4.25.

Note: Take a look at point of interest #1. It is not necessarily a point where I must take my profits, but I think it is a point where I must pay attention. I must see what happens intraday once it reaches this point. 

Note: If point of interest #1 acts weak, then it is a good place to take profits. If, it is strong, then I let the play run. 

I got in @ $4.20 because it broke $4.19 and it kind of looked like a small ABCD with a potential to have a daily breakout as well. I had no real target, so I didn't really know what to look for to get out. I didn't know if the breakout was good or not so I just let it ride. This is the wrong way to do it and just shows why being prepared is so crucial.

Note: If I had point of interest #1 in mind, there is a good chance I would have gotten out. Since, I wasn't paying attention, I didn't see what I needed to see. 

Note: Point of interest #2 was something VinnyB pointed out. This should have been the real support or risk. I seem to have forgotten some of these important concepts. I need to think about adjusting my strategies to trade better.

I think it's time to review.  

See something I did wrong today? Let me know by commenting below.

Fourth: Decent Play

Summary

I played this decently.

Ticker: LIVE

 

I saw the ABCD/ascending triangle setup and went in. Risked towards $2.

Note: I just took the money and ran because I didn't have much confidence to stay in it. Hopefully this small win gives me more confidence in the future.

See something I did wrong today? Let me know by commenting below.

Eighteenth: Da Grind

Summary

I'm back and I'm trying to grind away. I made some solid plays, but also committed a few errors. There was a chance that I made it today, but then I threw it away because of greed.

I need to keep improving or I will die. 

Ticker: SGYP

So I shorted the lower high instantly and got stopped out. My risk should have been at A, but I just thought it was too much. I Bot @ $8.42 for a long, but it did not break out as I wanted to. It took the rest of the day to consolidate higher and break out.

Note: I have to be patient. Especially with my account.

Ticker: ANTH 

This is how I thought the chart looked like.

It went higher the rest of the day holding the support.

Note: A quick parabolic followed by a 100% retrace is not the best place to short because its already made a huge move already. Better be more patient to see what happens later.

Ticker: RMTI

The chart looked like that. It retraced the big moves, but it seemed like it held.

I shorted when it dropped, but it triple bottomed holding support and grinded back up. This is a warning sign of when to cover.

Note: I made a few mistakes here and there that shouldn't have been. I'll do better next time. 

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.

Seventeenth: Market Manipulation

Summary

I lost $3 from commissions. I guess it could have been worse.

I made some interesting discoveries with a chart and gone mad with my plays. Even being right cost me money, but at least it's didn't cost me as much as before. I must continue to work even harder because I am always behind. It's the only way to succeed. 

Take a look at this shit. There was so much market manipulation that it's not even funny. I am lucky I caught on to it before dying out. 

Ticker: AERI

So this gapped up yesterday but looked weak. I ultimately was looking for a short, but today's chart proved me wrong. 

Note: Good thing I wasn't too biased about the chart.

A lot going on. I saw an ABCD pattern form, but also thought that it was too weak because it lacked volume and was forming a descending triangle. However, something was wrong with the chart. $20.00 was being soaked by the market makers and when I realized it, I thought there was a short trap going on. I immediately went long at @ $20 and when the trap triggered, it shot up. Unfortunately, I stopped out before it went higher.

Note: I suck at trading it seems. There is nothing but that. I just gotta practice more. 

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.

Fourteenth: Rushed Stop

Summary

I thought I had this trade nailed, but unfortunately, I added in and rushed the stop on a swing trade. I suppose I misrook a day trade stop from a swing trade stop. Especially on a stock below $1.00. 

This should have been my big win, but I lost anyways. I am very disappointed. 

Ticker: GTXI

I added in because it broke out above $0.98. At this point, I thought I would lower my risk by placing my stop below $0.98 because the stock was above $1.00 already at this point. I didn't think there would be a big pullback before the end of day. 

Note: It seems like I made this a day trade kind of stop instead of a swing trade kind of stop. This is something I need to be aware of if I am to continue forward. 

So it did the thing I thought it wouldn't at the end of the day. It just crashed and burned. I should have seen this coming because of the massive push and volume before the drop. I just thought $1.00+ could sustain. My stop should have been @ $0.87 instead. 

Note: I should be patient on Swing Trades and should remember that stops should be set accordingly based on that. I should NOT assume that resistance is support UNTIL it has already tested the area for a while. 

Note: This should have been a simple add, but again, I fuck up.

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.

The Eighth: Patience Pays

Summary

I took a long break from posting to re-focus. It was what I deeply needed to stay in the game. I realized there was no point in posting every loss. I just want to put my head down and get back to work. I will continue doing so until I am back in the game.

Ticker: GTXI

It formed an ABCD pattern and held a higher low at C. It also broke out of the descending triangle and held trend. I BOT @ $0.76 anticipating for the $0.82 breakout. It took a while, but it finally broke out. My patience seemed to have paid off.

Note: I will continue to monitor this and will add into it if it holds $0.84 as support. I will hold until $1.00. I will also probably up my stop on Monday. 

Ticker: STEM

The idea was for a morning consolidation before another push. I got in early @ $0.64 and waited for the push. It did not happen so I sold out.

It pushed forwards to $0.65, but it couldn't break it the second time. I should have noticed this and sold at a higher price to recover some of my losses. My stop was @ $0.63.

Note: This idea just didn't work. I will sell more quickly next time if it does not break the resistance after the second attempt. I need to remember that I can also buy back in if it works. 

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.

Second: Close, but no cigar

Summary

Took one trade today that I thought it was decent. It just didn't work out. I stopped posting because I took a long break while re-funding my account. I almost decided to quit posting all together because of all my losses, but then realized that that was stupid. I want to get better and this is a way to do it.

Ticker: GBSN

This trade just didn't work out. I noticed an ABCD pattern and  after it was close to resistance, I bought in @ $4.22 to see if it could break it. My stop was $4.11. One thing I might have noticed was the double top it put in with no clear break. I should have bought in when it broke it clearly for the red to green move.

Note: The double top with no clear break should have been a warning for me to be cautious. Other than that, it was just a position that didn't work out. The only available play here was to draw a descending trend lime immediately after the failed breakout and play the breakout from the descending trend line.

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.

Nineteenth: Giant Fuck Up

Summary

I got too emotional with my trading today. After my initial loss, I got angry and traded too much. Being tired did not help at all. I realized that I have not been playing the right way and it got to me. I know that if I continue the path I am on, I will fail. So I must steer the ship to the right path. It's the only way to succeed.

I discovered a few things about my trading after talking with VinnyB such as over complicating simple ideas and making stupid judgements. This is something I must fix.

Ticker: FOLD 

I was an idiot and made every mistake in the book with this one. There really is no excuse for this at this point. I just fucked up so bad. I think this was the case because I broke my rule of trading under pressure and not having another energy. I got my emotions get the best of me here and should have stopped after my first big loss from the squeeze.

Note: I made every mistake in the book on this one and ignored all the signs. My emotions got the best of me and I fucked up. This could have been a great trade, but my lack of common sense just fucked me.

Note: If I am going to trade like this, I might as well throw my money in the trash and live in the streets.

Ticker: CORT

I stupidly bought @ $6.00 because I rushed the trade. I got tricked by the volume @ $5.80 and forgot it meant that it could still go higher. I did allow it to test $6.00 at all and was just stupid. After its stunt, it was holding $6.00 so I got out before another run.

Note: I must be more patient and allow the resistance and supports to be tested more thoroughly. Otherwise, I am going in blind without confirmation. I almost got squeezed here because of it. 

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.

Breakouts or Fakeouts

Breakouts

I wanted to take the time to analyze how intra-day breakout charts should look like compared to how intra-day fakeout charts look like. These seem to be the signs I tend to notice before the big move and what I should look out for in the future so I don't miss out. 

Ticker: DSCO

So I chose this chart because it was clearly in a ascending triangle. Today was the day it broke out, but I did not play it since I was focused elsewhere. I think an ideal breakout chart should look something like this. At the end, I didn't want to chase so I just let it be.

I noticed that the range got a little tighter and an ABCD type pattern forming. When the pattern grew a bit steeper, I should have known that a big move was coming. The volume was solid and I should have looked at this as a positive sign. 

Intraday looked perfect. It broke previous resistance with great volume. I dipped and this is where I should have bouggt. I was where I got alerted too. I was blinded and did not even take it. An ideal breakout is one like this, great volume and good patterns. No problems!

Note: It seems like a good break of the previous resistance plus insane volume indicates a good chart. I could have even seen an ABCD pattern here and purchased. It was great throughout the rest of the day.

Ticker: PPP

So yesterday, this chart broke out completely and I missed the initial move. I just got in today @ $3.54. This chart looks pretty good for a nice pop.

I actually missed the ascending triangle forming for this chart because I did not look at the 15 minutes. Look how similar this breakout looks like to DSCO. It was a clear breakout plus the bars were near the upperend of the pattern.

Note: I don't think it matters that much where the bars were before the breakout, but I think there needs to be either a clear breakout or descent breakout with great volume. Anything else could be just a fake.

The volumes here aren't very clear, but the chart tells a different story. Again, volume is just a tool to aid the charts so the charts is the end factor. If there is a clear breakout, then I would have to play it regardless. Any previous days volume seem to affect the performance of the beginning of the next day. For example, the volume seemed to have done well, but it was a grind upwards because it slammed down the first clear break. This seems like an opportunity to purchase the stock at a better price.

Note: Remember, these signals work best for charts that have taken a beating. Not charts that look too overextended.

Fakeouts

Ticker: ZNGA

In the beginning, it looked like it was ready, but there was no clear breakout. I tried to follow the volume, but got burned because of it.

The volume looked decent, yes, but it did not reflect how the chart was doing. For stocks that have a lot of volume, it is better for the breakout to occur than to count on any volume. However, the volume indicated when I should get out which saved my ass.

Note: These are all similar charts, but the ones that broke out was obvious because it did straight out of the gate. The ones that don't are most likely fakeouts.

Recovery - Update 03/04/2015

After a failed breakout, I immediately took this off my watchlist. However, looking back, I should have noticed that it did hold the channel and that was the safest time to buy.

I need to remember that charts could hold multiple patterns and can operate on multiple time frames. Since these charts are hard to find, I need to be aware that a chart could still breakout after the first failure.

Check this out to see what I mean: WEN

Sidenotes

I don't  know how many times I have to tell myself this, but the chart is always right. Volume is only a tool used to gauge the chart. Volume cannot be depended upon. A clear breakout with good volume is great while a clear breakout with low volume means that it can still grind back up. No breakout with good volume just means that it hit resistance.

Breakouts don't usually last unless they look good on the daily as well. You should sell the day of the breakout or a specified time of when you think you should sell. 

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.