What a week filled with amazing lessons on improvement. I want to start off by sharing a few things. I am still honing in on my craft, and with both of my brokers going commission fee-free, makes it more possible to test the waters on certain trade. Sykes taught me it doesn't hurt to try different things to see what works. I took heavy size this previous week and it put me in a... I don't want to say stressful, but it felt like it was causing me to worry a bit. Especially on over-night positions. Well, enough of the babbling, let's get right into the trades I took, and why I took them, and how I traded it.
First trade I took was $SPNV, an OTC energy stock. On Monday all the energy stock was running from $SES and $BIMI performance. I didn't partake on those tickers, but with the solid consolidation SPNV was setting up in the .40 area, I took a shot at it. Risking off if VWAP fails, lol $5 risk on a $1k position. When it ramped into late day, I had the opportunity to sell for a nice $125 profit ($5:$125) thats fantastic R/R, but I stuck to the plan to hold it O/N, and the hard pull back into the close, damn that stung. Next morning, it had a mini gap up, but with the lack of volume coming in out the gate, it was a struggle to get executed as it panic slightly. Fortunately, I was able to fill my order for a small gain. The stock actually continues trending towards multi-day b/o zone later in the day. My feeling with OTC, it's great because I don't need to worry too much about it trading a/h, but execution can be tough especially when my size gets bigger.
$APHA, pot sector heated up with its positive ER, so I thought. Let's talk about my entry, it gapped up big in the morning. and consolidated around the VWAP zone. I took my with large size on the 3rd dip towards VWAP, with the float being so massive, I thought it would not move much being a $5 stock at the time, but I thought it could break HOD at least in the morning, with this type of news. Ticker setting HIGHER LOWS made gave me a sense of comfort, but my size made me uncomfortable as its been a while since I went this large on a trade. Spike came and perked towards HOD but stutter step a bit, I flipped it early, didn't wait for my plan to pan out on the break of HOD at $5.45. Minutes later it did just that, break HOD and went on to make news highs in the $5.50's. Happy to be on the right track to buy on dips, need to work on staying more patient and letting my play work out. The chart didn't do anything to make me feel the need to exit, gotta focus more on the bigger picture.
I played $APHA again later in the day because I felt it was holding majority of all its gains all day. Bought on the dip into the close in the 5.40's. Down trending daily chart was a concern, but the big gap and consolidate and increase volume made it worth a shot. Boom shitty news pops up a/h in regards to its ER not related to its POT sales. I said this on my profitly trade that I made one correct decision on this trade was selling 1/2 position during p/m the next day when it was gapping down. Hindsight, I should have sold all at that time. Note to self: GAP down is not part of the plan so get out when you can ASAP> But what I did do was hold that 500sh as it panics all the way down to $4.88 (previous support) a $.50+ drop was not what I wanted. So one rule broke there, is cut losses quickly. 2nd rule I average into a loser. The chart set up a higher low from the bottom, I bought 1000sh at $4.96 the higher low consolidation, bringing my avg to $5.11, goal was to sell when it breaks above VWAP. Why did I think it will do that, hmmm it was because I was married to the idea of its ER. consider that another rule #3 broken, don't get invested with any of these penny stocks. Rule #4 that I broke was leaving the computer to run some errands, hoping to come back to a large move upwards. Luckly it didn't tank any further, but when it tested the VWAP the 3rd time I cut it to minimize my nearly $400 loss down to $150. Yes I minimize my loss, but I am not happy with how I performed. It was total shit and don't want to be caught in that ever again.
That trade sucked the life out of me for the entire day, missing out on everything else that was moving.
On the next trade, I knew I needed to take smaller size, $ENDP was really nice, caught my attention on its big % move the day prior, setting up a Multi-week b/o, I love these trades, just need to learn to trade it better. It spiked in the morning and retraced. I took my position too early thinking VWAP would hold it but it went further. Next time take 1/3 size there incase it holds and rip, and add on any further dip to get to full size at ideal spots. It did just that, retraced down towards b/o and bounce sharply $.60. Learning to incorporate trade strategies on these plays. Even tho I made a mistake, I still loved that I could improve on it next time. These plays I don't mind losing to because it give me the opportunity to learn. Not like my $APHA trade, that was purely failure after failure, nothing about it I can improve on but to stick to my rules.
Traded $TEVA next on a consolidation above its b/o at 7.37. Higher price so I attempted to try out 1/3 position and if it dipped further to add. It did dip from my initial buy in the $7.50, but not by much. So I sat there with only 50 sh as it spiked into the close setting HOD $7.77, a/h it reached 7.97. I kept my tiny size thinking with such a move it will continue. Gap down and spike at the open the next day, I held my size to watch and learn. After spike, huge pull back down towards LOD, setting new LOD by .01, than to see it bounce right back up towards HOD, barely tho. Setting lower HIGHs... sign of weakness here, especially not having the juice to push it further after it consolidated at VWAP/RG zone. When it failed VWAP, that should have been a good sign to sell into the next bounce. I stay too patient, I guess too mesmerized with the education haha, exited when it was failed LOD for a scratch. Walked away with lots of new experiences.
Last trade was an alert for Syke $CLIR. I didn't buy when he alerted so I did not follow his trade. But he shine some light on why he is in such trade p/m. Daily chart for sure turn me off, it wouldn't have been a trade I would take. But he made some sense of it, its a former supernova, catalyst with Exxon oil is huge news. P/M spiked a high of 1.78, buying on a dip puts you in a greater R/R position. From its dip low of 1.24, I took a position on the higher low at 1.33, this was after outweighing everything Sykes was saying. Testing a setup doesn't hurt, and from what I learn all week, it just builds the experience account. Watch the price action as it struggles to rebound higher from its initial bounce, I felt it wasn't going to make it towards that HOD spike. So I exited for small gains, and glad I did as it just faded out the gate.
My week takes away: Stick to my rules. Gap down means Exit NOW. Take partial position on setups, and when it doesn't go as plan, minimize the lost, but when it does go as plan, increase the reward factor. This process of learning and improving is key. My mentor tells me, "If you aren't learning and growing, you are withering and dying" Always strive to be better than I was yesterday.