The Tenth: A Thoughtless Trade

Ticker: KRED

I was very stupid with this trade because I was impatient. I just thought this chart would bounce, but I wasn't even thinking. The long picture wasn't even in my favor. I have no idea why I even bothered with it. 

I got in because for whatever reason, I thought this thing might bounce. I set my bid in the morning and it filled pretty quickly while it went down. I should have know this was weak and I could have gotten filled at a much much better price. 

Note: Do not swing long until towards end of day. Always bid lower for a long if a stock has low volume and is especially in a downtrend. Do the opposite if the volume is higher and it seems like it is on an uptrend. 

Note: I will not be playing these charts unless I see a definite good setup. This was just bad trading in my books. 

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 Sixth: Review

Ticker: YELP

I decided to play because I was an idiot. However, I did wait for more confirmation before foolishly buying in. I need to examine the and think about the full picture even more in order to be more sure. This definitely has something to do with preparedness and homework.

So initially, I wanted to take advantage of a one day emotions swing on Monday. However, thinking about it, it was unwise because it could go down even further. I was just basing my trade off of the last time it did this. I rather not hold overnight and pay a fee and just play fresh in the morning. I think that was a wiser decision. 

I totally forgot about the chart being in down completely. It was short biased, but I wanted to long because of how it bounced off the support the previous time. I did not notice the longer term downtrend where could have signaled me to sell out. I couldn't even set up a stop because it was so fast. It would have been a 5 cent loss instead of a 15 cent loss if I had. 

Note: I did not notice the indeterminate bar when I purchased. The first sign on negative, I should have either sold or setup that stop.

Note: I have gotten confused between swinging and daytrading. I really need to sort out this difference and have a good plan. I can't switch in the middle of the trade and hope for anything. I need to remember that if I sell out early, I can always buy in. I need to remember to set stops because stocks can move very fast.

Prediction: This stock is definitely going on my watchlist. Just like before, if the stock doesn't go down on Monday, I think today's bottom will act as support. I will wait for a definite break below today's low to go short for a swing.

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.

Lessons Learned

Compilation

I haven't posted anything about my trading for a while because of the ridiculous trades I have done in a short time span. It is simply too much to keep track of and I was also a bit busy with other things like negotiating rates with TDAmeritrade. So I decided to make a compilation of trading lessons I learned from the those ridiculous trades. I hope this helps me review some of the mistakes I made and how to become better. After this, I will continue posting my daily trades. 

Big Picture

Always take a look at the big picture or previous patterns before taking a position. This will let you know how the chart could behave. It will also better help you determine if there is a bear or bull trap coming. It will keep you prepared for the worst.

I wanted to short overnight on the second of February because it looked like it made its move and ready to drop. The trend was a channel and I wanted it to break to the downside for its breakdown. This did not happen so I stopped out. The last bar was the third of February and this was when I wanted to short. What I should have known was that it was bullish and I should be wary of any bearish traps. 

I missed the first half of the day because I was out and came back looking at a descending triangle. I did not notice the previous descending triangle forming and just having it breakout to the upside. I just played where I played without doing homework and was just squeezed out. I later switched to longs, but was just too late. 

Note: The bullish flag you see was something I drew after I got squeezed. This was the second thing I should have noticed before shorting. I forget that the bars could form two different patterns at the same time. However, if I had done my homework before that this chart was bullish, I might have just saved my money and waited for a better confirmation. 

Testing Resistance

During these trades, I have noticed that I have added in my positions too fast without it letting it test the resistances. I also learned about the over/under idea mentioned here by VinnyB.

Here is an example of what I did wrong:

Added so you can track my mistakes if you wanted to yourself.

I added too confident and added to fast without allowing it to test its resistance. Sure, I did reduce risk on the way up, but I should have just killed it when it held the support. 

Note: I should have waited for a better confirmation and added in too quickly. 

Note: I have to again, remember that the bars could form two different things and that the overall picture dictates if the chart will be bullish or bearish. I did reduce risk, but I also added on the way up because I was too short bias. If it goes over and not under, then it's time to get out. 

Don't Overtrade

Take a look at all the commission that piled up on me. 

01/30/2015

02/02/2015

02/03/2015

The fees do definitely add up and if you are in a losing position, then the last picture is the result of overtrading. I definitely fucked up by trading too much and did not wisely add into stocks. The trades I should be making should look like Gene from the 02/02/2015 picture. 

Note: I need to limit my trades to at least 5 a ticker. Anything more than 5 should not be entertained and should be viewed as emotional trading.  

Don't Trade Under Pressure

I noticed myself under time constraints at times and forcing trades due to outside pressures. This has caused me to mistime buys and sells which in turn lost me money. If you do not have the time to trade, then don't. 

Trading under these conditions will lead to mistakes! 

These are some of the things I learned with my new broker SureTrader. I have already been trading for a while, but there is still so much to learn. I will share more mistakes I make as soon as I make them. 

TDAmeritrade Reduced Commissions, Part II

$3 Off Commissions

If you missed the first part, I tried to get the generic response from TDAmeritrade in regards to reduced commissions. I tried to push harder for a further reduction and here are the results. The general idea is you must be aggressive to get what you want or else you will get pummeled over. 

After their initial response, I felt very insulted because although they claimed I was a "top client," they did not respond to me within a reasonable time frame. I used this to start my argument for further reduction. At this point, they knew the numbers, but I wanted to let them know that I knew too. I calculated the money I spent for last year's commissions and explicitly stated it. The idea here is to show them your worth and show them that you know as well. I also included why I was worth lowering the commission for by stating things that will benefit them in the future.

 

Over here, the support said no. At this point, people may quit because they think it is hopeless. But, note, he did leave a backdoor. He basically told me that all I needed to do was transfer my other assets, so I just took advantage of that. As a bonus, I also got 10 free trades.

I didn't fall for any traps and I pushed even harder now. I originally aimed for $6.95, but after the last e-mail, I decided to raise it to the halfway point to make it fair. That was $7.45 and I immediately told them exactly what they wanted to hear and that was to transfer assets to the account.

AND FINALLY...

The end result.

The lesson here is to know what you are worth and not give up. Never take the first offer and always push for what you want. However, sometimes you also have to know when to take a step back. If the last message was a no, I would have stopped there and tried again next year. These are the things I am working on applying in everyday life to make it suck less.

Why do I use TD?
I am planning to use TDAmeritrade for pennies and maybe long swings. I am still thinking about it. I use their ThinkorSwim platform and their LVL2s for trading. I think all the benefits I am receiving are worth it for the price.

If you missed the first part, go here!

Free Robinhood Invites

I got Robinhood from VinnyB a while back and never got to use it because I didn't have any Apple Devices. They sent me three invites after I was approved. If any of you guys would like an invite, just post a comment anywhere on this blog or follow it and I will send you one.

There are a lot of trades that must be documented and a lot of lessons to be learned. Stay Tuned!

TDAmeritrade Reduced Commissions, Part I

$2 OFF COMMISSION

I finally got a response from TDAmeritrade.  I will post what went down so you guys know how to get a discount next time. Take note that I have used them for almost one year before asking. I have traded a good amount over that time as well.

 

Mentioning that you are planning to switch brokers helps.

At this point, they did not respond for at least 10 business days and a phone call. Today, the 11th day, they finally respond with this.

$2 off what I use and a bunch of discounts on other stuff that I do not use.

I plan on continuing this conversation and getting a better price. If not, then I will try again next year. I suggest that everyone does this after a year, if they have already not. 

Go to TDAmeritrade Reduced Commissions Part 2

R&R: 1/29/15

TICKER: EXEL

What a day it was. Today was my first day shorting after joining SureTrader and it was an awesome experience. My first short was on EXEL and it was such a mess. I lost my money overall and made some horrible mistakes. However, it was just a warm up for my second trade. Hopefully I get better over time. 

Looking at this chart, there were two options. It would either break $2.08 and just shoot up strong or it would go over and under that amount and just turn red just like how it did in its pastimes. So, I was looking to short over and under $2.08.

It went straight down so I became patient. I really screwed it up though by panicking too early and fell into a bear trap. I shorted @ $2.02 after its first lower high thinking that it was definitely going down, but encountered a slow grinding action upwards. After the second lower high, I was sure and shorted some more @ $2.00. However, I thought I saw higher highs and it going from red to green and covered @ $2.04 for a small loss. I was stupid and did not let it test the previous highs and just covered. After an awesome conversation with SureTrader, I shorted more @ $1.95 and hoped for a flush which did happen. However, I was looking into a one day swing and just disregarded it. I did not notice its previous history and almost got squeezed.

Note: Remember to take a look at the history of the chart to see if it has any special characteristics like closing strong. It could make you want to short with a shorter time frame in mind. VinnyB reminded me what over/under meant so that is useful. If a stock does not keep up with the support after breakout, then it is most likely fake. 

Note: Remember to take profits when you are up. You can always re-short later. I need to either work on swinging or daytrading.

TICKER: GENE

It was my first time shorting something this big. I made a lot of mistakes and only hope to get better as time goes on.

I really wanted to buy in earlier, but I missed a lot of bearish signals and cues. It was moving so fast that I didn't even know what to think. So I purchased in @ $4.25 after a triple top and I noticed lower highs on consolidation. I covered as soon as it hit the bottom of the channel. I re-shorted $3.90 because I thought it was going over and under $3.80 and it would just break, but covered @ $3.85. After the lower high, I was trying to sell out of my EXEL position and got distracted. I immediately waited for it to re-test the resistance and shorted for an average of $3.75.

Note: It formed a a descending wedge and although it looked weak, this thing could have squeezed tomorrow. Next time I plan holding something overnight, I need to put in a smaller size. My plan for tomorrow is to sell out immediately in the morning if it is strong and re-short when it is at its highs. 

Note: I need to take smaller positions for holding overnight and I need to work on the differences between swinging and daytrading. I need to figure out the fine line and how I will play each stock.

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.