This morning the screener listed many opportunities, but made some mistakes when picking a stock. The 1 year / 1 day chart does not fit any of Tim's patterns. And the stock has 1.09B float!!! Missed that, and that is ridiculous!!! Volume > AVG Volume > Float... low float < 10 Million!!! So, many mistakes today. Lessons learned!!!
First I rated the number of news article with too much weight, needed to review each news article and determine its relevance. Second, I should have sorted my screener based on % Change and focused on the top hits with good news e.g earnings winners, contract winners or technical breakouts!
Overall $TEVA news was not good at all!!!
However, cut losses quickly when price turned against me towards my mental stop.
This rule is really saving me in a big way.
I am also using the risk management strategy from the 'Penny Stock Course' book, which is helping to clearly define, entries, stop losses and potential target etc!!!
Bought $TEVA at $7.36 and sold at $7.25, mental stop loss was $7.22.
Good trade considering sticking to the plan, cutting losses quickly, and saving myself from awful stock analysis.
Based on what I learned today, this is the result of further tweaking my screener.
Looking for big % Change stocks with low float < $10 million and a catalyst such as news (earning winner, contract winner or technical breakout), decent volume to be able to enter/exit, and less than $20.
$CETX was the best candidate for today, and the daily chart is a perfect model of what I want to trade.
Will look tomorrow for the same screener indicators, and chart pattern to ensure its the right setup, and not trade unless its EXACTLY the right setup!!!!
WARNING: If a stock has 100%+ Change expect a possible aggressive reversal, which happened with $CETX. Although, I would have planned to enter in the morning and out before the afternoon consolidation...
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