OPERATIONS and GUIDELINES of a First Green Day

 

 

 

BIG % GAINERS 

HISTORY HISTORY HISTORY HISTORY

 

NO 1 Day SPIKERS

 

1. Identify Multi-day runner (multi-days of new highs with millions in volume and volatility). Catalyst and news should re-enforce the price action and overall chart but never should be the determining factor for the trade. 
2. If the stock has not proven itself….LET it PROVE ITSELF to run multiple days because we know that the stock will eventually “come back to me”.- Proving itself means holding majority gains on the day in consolidation near the highs and /or building higher levels of support. 
3. As the stock runs WITHOUT MY MONEY. You should be anticipating and expecting the FRD (first red day). 
4. When that red happens LOOK LEFT ON THE CHART. Start to identify the support and resistance and begin to notice how the price action is effected at these levels. Usually around whole and half numbers (human nature). 
5. Charting should be completed with daily candles and 10-15m candles. 
6. The stock needs to have a full red day. It needs to end the day red generally .20+ cents down. This needs to happen because the stock needs RANGE to bounce again.
7. No pre-market trading unless you understand the risk of it falling more before the bounce. Even if the stock the pre-market trading is less volume and usually it will re-test g/r at the open or go back red. But keep telling yourself the stock will move at the right time of day which is usually regular hours. 
8. The initial bounce of the FGD is usually the strongest. Any days following will likely need further downside and/or consolidation with potential catalyst to bounce stronger and further. 
9. You can play this pattern with strong CONFIDENCE, CONVICTION and CONSISTENCY.