Welcome to my weekly trade review, where I'll go over my thought process on why I entered the trade, my thought process during that time, how I was feeling emotionally during the trade, my mistakes, and how I can improve. Let's Go!!!!
First trade of the week $FNMA, she had some fluffy PR that stated the Gov't will allow her to retain her capital up to $25 billion, doesn't mean she has that currently. News actually came out later on my end at 9:40. Her spike in the morning wasn't what got my attention, it was the multiple red candles on the pullback down towards morning LOW. "Hmm, dip-buying weakness, couple with seemingly positive catalyst, trading near its highs, OTC volatile stock" Lets take a stab at it on the dip, using LOD as risk $3.72, entry $3.75 @500sh, the goal was to hold and sell near HOD $3.95 ($25:$100 risk-reward). With the nature of FNMA, she moves pretty slow, she is a big girl with a really large FLOAT 1.16B sh. The first initial spike got me excited thinking I pull the right trigger, the VWAP slap back humbled me a bit, kept saying to myself risk isn't breached, stay patient Long. The slap came as low as 3.74, finger was ready to sell, but it rebounded nice and slow back up. consolidated above VWAP. The beauty of OTC is it gives you time to see the wall of sellers, with the lack of incoming volume, I felt it wasn't going to make it to my goal, so I cut it for a small profit.
All in all, it was a proper trade, not ideal as its range isn't much, but the execution of entry and exit was great. Kept the emotion in check. Would love to rinse and repeat this type of trade. Let see how my other trade pan out.
Same day I traded $GBTC on an o/n swing trade on a FGD closing near its highs that was running because bitcoin was having a FGD after a long period of downside. My entry was when it popped right back above the $10.50 resistance and held, this was kind of a key price point the chart showed me was critical, from the intraday to the daily chart to whole number. Now I know what Sykes would say, "That is super risky due to Bitcoin trade 24hrs, and anything can happen while you are sleeping" Yes it can, it actually went higher, but it was something that loomed over my mind the entire night. My goal was to sell into the morning gap up. With hindsight, it would be best for me to sell right at the open, I stayed patient tho looking for further continuation. The first 3-5min of stock can tell me what will happen next, I need to remember that. Lack of volume = lack of follow-through. Got out a bit late, but glad to be out as it didn't have the juice to hold, just faded all the way back down, giving back all its gains. Good indication of weakness is the lower highs with testing multiple times at a support zone. Lesson: only play this when the sector is heating up, could have been worse, I lucked out exiting the trade with a scratch and not a gash.
$CLSI oh how I am not proud of this trade. All-day I watched it do its run-up, I didn't even buy it when it broke above HOD the previous day, just kept thinking it was up too much (Grittani voice "Do what the chart is telling you"). I just watch it move without me. So on the second day, it was on my screen, this time I was ready to play it, but when it gap down, "Damn, guess it was a one and done" I nearly gave up on it again. But amazing Guru Sykes was talking about it. I had my order ready to submit and when Sykes alert went out, I knew his chat room will jump in, I submitted it immediately looking for a scalp, but the breaking of PHOD, a part of me was whoa this could keep going. But then another part of me was "Don't be stupid and greedy, exit) Had my order to exit at .95 because it would be tough to break above $1 mark. Pretty much nailed the top on this one. Making $100 on a $800 is best case scenario on a chat room scalp play. Again I am not proud as this is not self-sufficient. Take away from this is to never follow alert, it doesn't get you anywhere far in the long run. Nip the bad behavior early before it gets out of control.
$CFMS - this one broke one of my rules, buying after 11am. Now the chart did not tell me to buy, here are the reason. #1) Its under VWAP, all the people who bought in the morning is now bag holders. #2) Trying to make a play where there isn't, I thought the perk above the "Midday" consolidation was probably a ramp towards its highs. Lack of volume = lack of follow-through.
My reasons for entering the trade: Great reaction to the news catalyst. the consolidation zone gave me a great risk reward, using the low of the consolidation zone as risk. I believe it was $2.23. My entry 2.28, .05 risk. Goal was to ride it into the close breaking HOD of $2.60. Is that realistic, No, but even it hit .20, .25, I would consider that a good trade 1:5 R/R. Cut it when it didn't do what I wanted. Lesson from this trade, I should focus on not trading midday, it's unpredictable. Keeping the risk zone was key, glad I cut it and followed the plan. Took a lost, but if I let it ride, I would just give myself a headache watching it go up and down, waste me precious studying energy.
$CVSI, bad sushi but the reaction to the news, FGD closing above its highs on an OTC with increased Vol into the makes it a good trade. Sykes did take a position on the HOD break, I didn't follow him, but when it topped out at $2 and pulled back I told myself if it pulls back closer to the HOD break Ill take a position on a dip, came back down to 1.92 and lingers for a bit, I JOIN the ASK, and luckily filled a bit into the close. Sitting on 300sh at 1.94, risking 1.90 goal for a gap up to sell. Did gap up in the morning, I knew sykes would sell immediately, but I again want to give it 3-5 mins to react. Stayed calm when it dipped below $2, was real close of exiting, but I reminded myself 1.90 risks, and it was nowhere near it. I want to make sure I was in control of my exit not exiting because I "thought" it was weakening. When it retest open high and failed I click sell the bid and was out. Walked away with a decent lesson on OTC FGD closing strong into the close on positive news, buying on a pullback. And respecting my risk.
$ZYXI was a pretty awesome find. Proud of myself for discovering it. Could trade it better. I bought this FGD, didn't close strong at the close when it perked above VWAP. Much higher price so size was small to reduce any gap down risk. It was a ER winner breaking above a multiday resistance coupled with increased volume. My goal was to be in early and look for a gap and run in the morning to sell in the mid $11's (daily chart technical analysis). It did gap but did not sustain. Lack of volume = lack of follow-through. 3-5 min I should be out if it's not pushing higher. Instead, I held hoping it would get more volume. cut it in the nick of time. The key lesson here was to not give up on the trade. As you can see it dipped right back down to its b/o point and supported. If I kept my head in the game, it would have been an amazing trade, buying when the dip bounce, using b/o as risk, hindsight is easy, so we will just say stay in the game, keep it on focus. Most likely gave up on it too soon, like I did on a few of the actual plays that did happen this week.
Last trade of the week was on a Gold ticker $SBGL, buying this was due to the market just falling apart. It perked on volume and broke above its opening high. It was also a multiday/month b/o chart as well, downside it had set 2 big GD already. The market recovered so I cut it right where I bought it. Market recovered and this ticker collapse. Glad to have followed rule #1 cut losses quickly.
Overall lesson to take away:
Never follow alerts, refrain from trading midday, avoid trading commodity-related stocks for now, until I am a better account builder. Get better on the process of evaluating a ticker on key elements such as its range possibilities. My entries aren't as bad as it used to be, still, need to improve. Exit definitely needs work. If I am playing my O/N pattern, 3 mins max, if it isn't doing anything cut it!!! I wish you all a wonderful weekend, stay positive, stay focus, count your blessings, and smell the roses!!! PAYCE