Alright!! Finally a small win today. Straight up, the win was super small and absolutely nothing to get excited about from a dollar value perspective. What I truly loved about today was that I traded with confidence and traded with a solid plan.
ALDR – This was a bottom bounce set-up I had been studying over the weekend. When I saw this pre-market, I was a man with a plan. I told myself to take super small size because this will be a test run. Get a feel of the set-up I had been studying and execute. I would say I traded this 80% to plan. 20% still room for improvement.
a) I got to trust my plan. I failed to add when the stock hit bottom. It was the plan
b) I would say I got scared out a little bit too early even though the chart was still strong.
There is always next time.
MBRX – This was a momentum play and one I had practiced on my paper trading account. I played this well. Did not get too greedy and took my profits as it came. Solid entry on this as well.
Got to scale up my size in the future for sure. Maybe only after a minimum of 2 weeks of consistency.
AMRN – This was my stupid trade of the day. The setup was not a 100% and it was a more advanced set-up. I tried to short this on the front side of the move and like 10s after I entered, I knocked some sense back into me and pulled out. It was a 15 dollar loss if you include commissions but definitely worth it.
Note to self: I have changed my tagging system. Au Revoir.
Today I learned some hard hard lessons.
- Momentum in the markets seem to be dead for small caps and low floaters. This means all the trading strategies I had learned over the last couple of months on my paper trading account are now invalid
- The higher caps seem to have more potential but they behave a lot differently than the suckers I had gotten used to.
- I need to work on my emotions. I respect my stops well but I always trade over my max loss. This will now be at 150 henceforth. If I lose that much I will piss off for the day
- This weekend will be a study weekend and hopefully I can learn more about mid to large caps and how to trade them. Figure out some set-ups
JUNO – Absolutely dumb short. Tried to do a multi-day resistance with volume (MDRV) but shorted way too low. Got out at my max though with slippage. Need to learn a little more about this set up over the weekend.
MBRX – First red day, no news so tried to short it. Got a good fill at 1.05 but then added to it at .99ish and 0.98ish too aggressively. Stock started forming an ABCD set-up (look up Nathan Michaud on youtube) so I stopped out. Mistake here was to add too quick and too early. Will have a look tomorrow to see how it closed.
ESPR – Was chasing this stock a little. Trend indicated an upward move but got screwed out. It ran up pretty damn high yesterday. Effectively a bad chase and chart was not clean.
STUDY STUDY STUDY this weekend and stick to set-ups I know! I will be back next week stronger. I think tomorrow I will need to take a break.
Tickers Traded: 4
CELG – This cracker was running high and flying in the day. Could not find an entry point on the 5 min so I avoided until the first pullback. That didn’t work so got out quick
RUN – Multi-day breakout trade, got stopped out though
FL – Dumbest trade ever. Read my charts wrongly. Got out like 3 seconds after entry but got screwed. Shit happens! Just have to deal, learn and move forward.
ADBE – Shorted this one as a fade setup. Caught it near the 20 EMA on the 5 minute. I promised myself to only short at resistance. This was a good trade no doubt. Wish I could have taken slightly larger size but price was way up there.
I am up on the day but down after commissions. Going to keep up the grind. Momentum on the other hand was shit on small caps today and this month.
Also side note:
I am only going to tag the best set-up or the ‘loudest’ set-up of the day from now on. Today we got that ADBE fade going onnnnn.
Tickers Traded = 3
Boom! Today was a terrible day. Am I surprised? Not really, but it is disappointing nevertheless. I lost all my gains plus some. (if you include comms)
So things I did wrong?
- I used the 1 min chart to time my short on KMX. Stick to 5 min chart patterns!! This resulted in me thinking I shorted at resistance.
- On all the my short trades, the daily chart did not look that great for a play. Just meh
- I traded sub A quality set ups! Always stick to the best set-ups.
- I traded over my max loss. It is always ok to step back and throw in the towel early if things are not working out
Things I did right?
- For the most part, within individual trades I respected my stops and my profit targets. I did not cash in too early or stop out because of fear. Today this did not work out for me but I think this is the right approach.
Lessons Learnt! – Timing is everything! As you can see below, the KMX trade eventually worked out as it reached low of day.
To the next trade soon! Have a good one guys. Oh yes I will be back.