Did very little HW prior to the trading day, just wanted to focus on OHRP, VLTC, NUGN, and any other strong% gainer on the day.
- OHRP
Gapped down, Probably gonna die all day, Going to play around scalping it.
- VLTC
Weird but it gapped down a little bit to 6.44, it didn't have the best strong close, but i was expecting a spike. It tested 7 pre-market, so i'm feeling it's just dipping from that. I normally will close this position on any other but there's solid resistance at 6.3 from yesterday's mid day/early afternoon. Hypothesis: Risk 14cents downside for the potential spike, hoping it'll test 7 again. Result: Spiked into 6.9, strong resistance yet again at 6.9 so i'm closing. Entry from yesterday is 6.58, Exit at 6.85 230$ profit.
- NUGN
T3h ideal chart play/most predicatable pattern has come up again. g/r yesterday and the day after the first red day!! It dropped from 3.66 to 3.22 at close which breaks below the previous crashes low!! No shares to short but let's play it as if there were. Slight pullback up to 3.26, wall of sellers.. Short 2500shares at 3.26.. nice morning panic to 3.05, bouncing up to 3.13 (lower high), keep holding.. breaks below 3.05 and bounces of 3 (lower low), bounces to 3.1 (lower high), and tests 3 again.. uh-oh.. will cover depending on how high this bounce gets.. meets resistance that morning's panice 3.06.. breaks below 3 to 2.95 and bounces to 3.03.. the bounces are getting smaller.. seems like consolidating, cover at 3 for 22cents per share since i'm not gnna babysit anymore but this seems like a waste of the ideal play.. Will come back to it later to see how it finishes up and whether covering was the right play. Result: Had a mid day panic.. bounced back just underneath 3.. fading volume from yesterday which is a good sign it'll fade... Mid day- early afternoon fade.. broke down through day's low at 1530 down to 2.55by 350pm.. bounced to 2.7 at the close..
So.. I noticed that i shorted in the morning knowing well that it'll drop but had NO EXIT PLAN, INCOMPLETE HYPOTHESIS. I knew the previous crash support was at 3.25 which the day started off below WITH a panic. So my mindset was i'll close where i see resistance, completely ignoring that the last, last crashes support was at 2.5.. which was today's low.. Coincidence?? I'm an idiot.. 3rd day not following the most important rule of having a COMPLETE hypothesis prior to making a trade. I only would've made 660$ on a potential 2160$ profit on the IDEAL Pattern but i got scared out of my position because i didn't bother to analyze an exit strategy..
Thoughts:
Trades/Scalping: I'm starting to see the difference between high probability trades and me getting forced into scalping, which i've had really bad results from. Scalping however has forcing to really, really watch how a trade is going in comparison to the previous highs/lows of the day. This makes me see how much more important it is to check 1d, 5d, 1m, 3m, 6m, year high/lows since the high probability trades are based on those and NOT on intraday patterns. Prior to a trade, i need to be asking myself.. Is this a high probability pattern or am i scalping? Also, I'mma start keeping a tally of my trades here Actual Charts vs Scalping Trades, I think i'm like 4/4 on actual plays andl like 30-50% success on scalping. Also, i'll b starting to review the prior day's posts and comment on them to get progress feedback on a day-to-day basis.
Making mistakes, which is good since i can learn from them.. problem now is that i keep making the same mistake because i have a short memory and forget what i learned (will be making flashcards as SOP on Known chart patterns/Still fairly new, I'm hoping it'll be etched into my mind as i see more charts and get more experience, but for now.. the flashcards will help my stupid memory problems...) This has stacked up enough that i feel like it's a limiting my progress, I'll be taking a few days away from the market and setting up systems to help me in trades. Also, watching videos has been to a halt, will be spending the time away from the market to beef up on videos and reviewing the fundamentals. Things to do before i go back to the market.
1) Have a system of doing HW prior to market day
2) Have a system in place in which i can scan stocks at market open.
3) Have a flashcards to help me keep tracks if whether or not i'm still on track on my hypothesis.
Good stuff, won't be posting stuff until i get back on the market. Might put stuff here just in case i wanna have on record something important i learn from vids.
- Kaizen
