The Tenth: Stopped Out

Summary 

This is just the daily grind of it all. I really hope to improve from all this and learn my mistakes. So, I just stopped out of everything I tried today except for one. I developed a new strategy for stops and on how to build my small account. I will use my SureTrader account to scout for potential swing and test for breakouts and once it does breakouts, I will go all in with my TDAmeritrade on a sure trade. I am going to be focusing on one play at a time and find the best one. This should help with my analyzing skills and my chart choosing abilities. 

It may already be too late because of the hole I dug myself into, but I will give it a shot and see where it goes. I rather fight to the death than just give up. 

 Ticker: GSS

This is my loser for the week because I bought too much of it with hope. I should have tested it with a smaller portion and I should have noticed the way it was going.

Note: I rushed too fast to buy this thing and I bought too much. If I wanted a position, I should have just either waited for a new pattern, breakout, or just bought in with small size. I was hoping and that got me to lose a lot more than I had to. 

Note: I noticed I wanted to test my patience with my stops, but I cannot use that as an excuse to not sell at a better price when the new pattern was obviously bearish. 

Ticker: TVIX

I bought in TVIX again because it gapped up. I rushed too fast to buy in when I should have waited for a higher low. I thought I noticed a cup and handle pattern, but I should have just waited for it to test the resistance.

Note: Even when I did buy in, I put my stop under $2.12. It did break this, so I think it might be weak. However, with my new stop strategy, I would have been able to survive the drop and sell off at a better price. It is something I will be testing in the upcoming days. 

Note: My new strategy is look to at the prior day's high and put it a cent below that. If I did it here, I would have been fine and I would be able to fight another day. It did hold above $2.12 so this stock could be on its way towards a reversal.

Note: This is an interesting chart to keep an eye out for. If it breaks $2.19 tomorrow, it may be a good buy for swing. I would buy again, but TD would not let me because of the three day settlement rule.

Ticker: CYTX

I purchased even after the huge red warning. However, it did stay above the support, so I just went with the chart. The TD chart did not have the red flag, so I thought it was okay. Even though it did go high, I think it meant that it won't breakout crazily.

Note: If I plan to hold a ticker for the whole day and think that it will close at the highs, I should go for a swing stop. If I plan to watch the chart closely, then adjusting my stop would be okay. My original stop was at $1.26, and I raised it before I left. I knew it was going to close near the highs, so I should have just left it and it would have been fine. My original risk was 3 cents. I could have sold it higher. when I came back. 

Note: The above strategy should work for only clear breakouts. Even if it is a fakeout, I would have lost it anyways so there would be no problems.

Ticker: CVOL

I got this because of its clear breakout of the channel.

Note: This is a low volume chart, but I will probably buy more tomorrow if it makes a new high and holds. This might be the chart I am looking for.

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 Fourth: Another Fakeout

Summary

I should really review my own blog before I trade. I made a mistake purchasing a fakeout even after clear red flags. Shit like this is really going to take me out of the game for good. The only positive to take from this was I had a clear stop and I was patient. Everything else was just reading the chart incorrectly.

Take a look at Breakouts Vs. Fakeouts to see what I mean.

Ticker: GSS

This is the right way to play a swing. Buy early while it is consolidation. Have a clear stop and be patient for the breakout.

Note: Since today was a red day, I should have just set my limit lower and wait for it to get filled. I rushed to buy and bought it a little higher than I should have. 

Note: I think I am more comfortable with these types of stocks because they are nice and steady. When they breakout, they breakout. 

Ticker: TVIX 

I was impatient and bought in because I was reckless. This is not the way to trade. 

Not really a clear breakout, but after the fact. I just wanted to say that it looks like I was chasing here. I should have just told myself that I was chasing and waited for a better entry. $2.02 was a good entry for this stock. Not $2.12.The only way I wouldn't be chasing would be if I was buying on dips and this was really a breakout.

 

So I bought in and ignored the first red flag because I was long biased with this stock. I should have been short because it did hit resistance and it did NOT have a clear breakout. I should have let it test it out further before diving in.

Where did I see this type of move before? Oh right, here. This stock and ZNGA had similar volume and I just fucking ignored it. I must be an idiot for buying in. 

Note: The only positive here was I tested my patience. I should have killed the trader sooner after I recognized the descending triangle. Fuck me though, this was an amateur mistake. Another thing is my risk management got a little better which is good.

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.