Just a quick post for today...
+ i'm reading the charts very well just not sticking to the plan laid out.
- plan is on point BUT i'm greedy and held on too long/not taking profits/not sticking to the plan
- could do more preparation prior to market open
TRXC
Still fuming about the missed potential this morning (Japan Time) but went ahead and got in pre-market at 4.0 with the intent to sell at 4.4 prior close d/t nice uptrend in pre-market... Reached 4.4 and noticed that RSI wasn't waning and a 100k+ buyer keeps getting hammered. If i had more than 1 day trade, this is where i would ideally lock in half my profits like yesterday and let the rest ride for an easy 10%, but since i only had 1 day trade, i sat in for the ride at 4.8 multi-year resistance... 4.8 resistance being tested and I knew with 100% that i was abusing it at 4.4 but i was jst being greedy at a 4.8 breakout... my head told me to close that position in for a 400$ but i held on due to greed playing off the 4.4 resistance as my mental stop loss... stock crashed from 4.8 > 4.4 so fast i didnt even see how the RSI/Resistance was doing since i wasn't paying attention to the chart and on my phone. Once 4.4 hit, i sold immediately and got filled at 4.36 using a market order for the first time. Even worse, I executed the stupid order for 400shares only, left with 100shares and no day trades left, fml..
On a positive note, it's nice being able to see how shorting would work in real-time.. I'm still too scared to short but from the seeing it from the short seller side, once it crashed to 4.4, I knew the chart was broken and it's a short seller's paradise, I watched it tick by tick... I'd short from 4.4 risking off 4.6, within two minutes and I saw very little support on level II from below 4.4 down relative to the ask size, it was only a matter of time.. This is the sweet spot to short at, Within a minute of it cracking 4.4, the chart crashed to 4 and even dipping thru to 3.87.. it held at 4 for a little bit and RSI is slowly resetting to 50 with almost no upward move on the chart, This is the Ideal time again to lock in half the profits and ride the rest cuz the chart for a short seller is still not broken and RSI shows selling is strong.. chart crashed another to 3.4 til bouncing off and consolidating... Paper trading this I would've easily caught 0.40 - 1.00 of a 1.40 crash 8-22% off a 28%ish crash.. the hard part is handling the emotions through the trade.
1200pm EST: ugh.. im supposed to ignore mid day but once everythings slows down, i get so accurate on seeing trend changes/strengths... Cup and handle forming around 4.. THIS STOCK HAS PANICKED TWICE and still has strength to push up ?!?!?!??!!?! RSI is on its side, I feel like its going to break 4. I wouldn't buy the breakout.. two days in a row i've seen breakouts fail in this horrible overall market, It's really best to stick to dip buying. breakout died just past 4 but slowly a mini-cup and handle is forming to breakout past 4.04.. RSI shows stronger strength.. It's a slow tug and war but every now and then a surge of buyers comes in.. I think if it breaks 4.04 and squeeze short sellers its got a shot to 4.2 and consolidate.
1230pm EST: Lulz.. short sellers got squeezed.. feeling unsure if i would've bought the breakout but i know my mind says not to and stick to dips -_-;; sigh... i need to listen to my head more.. I'd rather buy at 4.4 at a chance at R/G .. but only at a dip after it breaks r/g and if today's volume is going to surpass yesterday's volume... I have no daytrades, but i really, really want to buy in if the opportunity arises... I still can't tell if the emotion of wanting in is a good thing or not.. As long as i formulate a plan prior to entering and sticking to the plan i believe it's worth the risk.
1400pm EST: I love RSI, before if looking solely at the chart i'd be scared. But RSI really lets me where the strength of the chart is in conjunction with support/resistance, Time/Sales, Volume, Level II.. The more indicators i use, the more accurate i am vs the traders in the chatroom.
Plan: If,
1) Volume picks up between 2pm-4pm
2) Breaks out 4.4 going red to green on strong volume
3) RSI shows an INCREASE in strength of buyers
4) Level 2 support shows tons of support at 4.4 on a dip after breaking out
Only then will i buy shares.... sheesh.. this prolly the most strictest requirement for indicators i've had but it feels good since i'll be more accurate. I will normally buy anytime between 2-4pm but since i'm out of day trades, i'd be more comfortable buying closer to the close with strength. Also, I'm still unsure of my position size... sigh.. 2 days worth of screwed up trades due to emotion and i really shouldn't go anything higher than adding another 100shares.. but if this hypothesis falls together, i'd be missing out... but then again, the biggest gain here is not the $amount i'll be making but the lesson and discipline i'm acquiring....
Buy 100 shares @ a dip as close to 4.4 as possible with an exit at tomorrow's open depending on how big the anticipated gap..
....... pfft.. i was typing out exits dependant on how well the stock gaps up but in reality i'd already have profits by then.... i'm getting greedy again.....
My exit strategy should flat out be: SELL AT MARKET OPEN.. For the sole reason that i have no daytrades left tomorow and have no control after the market open... Lock in profits tmrw early AM while i still can...
1430PM EST: Quick note on Volume, I've never really known how to use volume well.. other than hey, other traders say higher volume the better.. But now that i think about it.. Stock has been trending up according to RSI/Support/Resistance BUT.. i always thought of it as leaning towards there are more NEW buyers coming in.. but that's not how it feels like the stock is doing.. It feels like there's LESS SELLERS so the price is moving up... It seems like the same thing but now that i'm looking at it, the small differences/details really make the big difference because having more BUYERS is not the same as LESS SELLERS although they can have the same effect on the price action.... Different catalysts but same result so i always thought of them as the same... Hopefully i can study more studies on what volume really is/shows.. this is interesting.. With this new thinking.. I'm definetly not going to buy this even if breaks r/g and dips down to 4.4 unless strong volume accompanies it..
1430PM EST: Imma call it a day.. This stock doesn't exhibit the amount of volume i'd like in the afternoons this whole month so i'd rather focus on the valuable lessons learned today and call it a day. I'm still long 100 @ 4 and it's currently at 4.3 leaving me positive for the day at a measly 25$ (70 if it wasnt for the mysterious 45$ charge on my account).. It's not the 1000$ in my account feeling that i'd like.. but it feels more like i've learned lessons much much more valuable that 1000$ can't compare to. Don't focus on the profits, Focus on managing your risk and the profits will follow.....
THST
This I even admitted to a friend earlier that i shouldn't have chased this/NOT a stock i was watching since it was from the chatroom and i just wanted to jump along for the ride last night due to the earnings report.. the play is a BUY Earnings winners on DIPS ONLY !! yet i bought to chase the breakout.. so nuff said, i was still up overnight, damage control mode. The plan was:
Gap up big = Sell at market open, lock in profits and get out.
Gap up small = If low volume pre-market, sell at open. If good volume, might wait for a spike
Gap down = Sell at Market open and limit losses
What ended up happening was a Gap down + Non-existent volume pre-market and a downtrend. Instead of sticking to the plan and cut losses quickly, I HELD like a greedy idiot, hoping that the market would go up. I acted on how i THINK the market should treat the stock instead of REACTING to how the market is acting on the stock. What should've been a sell at market open for a 25$ gain which is AWESOME considering it didnt do what i wanted.. I held on and justified a risk at 1.5, the prior day's breakout.. oblivious to how the market was treating the stock.. It downtrended of course and cut my losses once it hit my mental stop loss at 1.5, used market order again, filled at 1.48.
Coulda woulda shoulda been 800$ yesterday became a 40$ loss due to greed
Coulda woulda shoulda been a 25$ profit on THST when i was WRONG on my hypothesis, but got greedy and instead lost 100$ (yet TDameritrade charged me 145$ wth..)
Coulda woulda shoulda been up 20% 400$ on TRXC 4>4.8 but got greedy.. One good thing though is that i stuck to my stop loss and was out at 4.4 for a nice 10% gain.. Shitty part is that I fat fingered 400 shares instead of my whole 500share lot... Sometimes the stupid numbers change in the platform without me CHANGING it.. its annoying and so stupid.. Need to double/triple check my orders prior to sending. So 3 day trades / 1 overnight trade later.. I'm actually breakeven on cash yet TONS of real-time lessons/mistakes learned.. Funny, I was so mad at being greedy earlier that i shut down the platform and was calling it a night 2hrs in.. But something reminded me that hey... i messsed up bad, but i gotta reopen the platform again and review where i coulda done better... Resiliency.. It's getting up there alongside Kaizen..
Lessons learned today in order of greatest impact:
1) GREED IS A BITCH, As superman always says, LOCK LOCK LOCK IN Profits. This past two days specially yesterday just made me a firm believer in locking in half my profits.. I need to adapt to not care if i miss out on potential profits cuz i've felt firsthand what it feels to make big gains but let it slip away due to greed.
2) Don't focus on the profits, Focus on managing your risk and the profits will follow.....
3) Need more preparation prior to the market day and have more conviction to stick to the plan and not how I feel.
In an overall market that's down and the majority of people are losing money... I feel really good being in the small percentage that's made money.. albeit 25$, no matter how small it is.. Gotta Sign off the day on a good note...
** Sykes jst released a really good video abouto TRXC which clears up something i've bn thinking on, what really is causing the uptrend? After a crash, yea there's a chance that people are still very bullish on this damn stock.. but after two crashes? in the same day and still uptrending ?? that's when i started to feel unease at my theory and chances are very slim that people are that naive to be bullish on a stock cause that doesn't make sense unless people are very very stupid which definitely is a possibility but not a higher probability than a "SHORT SQUEEZE" !! That makes so much sense.. i've never seen a short squeeze on a NASDAQ Stock much less in real-time !!.. it makes so much more sense why the volume is trickling down yet it's uptrending... This needs to serve as a reminder than i have to look at stocks from both LONG and SHORT to prevent myself from getting trapped by missing minute details.. funny how earlier i noticed that with the lack of volume there really wasn't an increase of buyers... but a LACK of SHORT SELLERS added with the fact that they have to buy to cover... I've been so engrossed that its a cup/handle or ABCD pattern but it didnt make sense what was moving it with a negative catalyst such as a financing, so i just reasoned that there's alot of stupid people buying the stock.... I'm reading technical analysis of the chart great, but i need to work on unfamiliar catalysts such as news and how they affect nasdaqs.. only way to do so is watch more videos, preferably live webinars. Once i'm settled in my next location, i'll be joining the millionaire challenge for sure..
