This morning when I saw $COOL pop up on my TOS scanner I hesitated on the first dip buy above 4.57 because of the range. It only has a float of 1M and was up on some merger agreement news. I went to check on other stocks and when I came back it was around 5.80 so I bought 150 shares when it broke above 6.00. I did check the daily in the morning and it's at 52 weeks highs but not sure why I missed the history of failed spikes. There were some on the 5 yr chart too. Anyway it got up to 6.22 and dropped and I sold when it broke support at 5.80. It dropped all the way to the 4.50s so glad I cut losses quickly.
Yesterday when $EMKR popped on the scanner I also hesitated on the first dip buy. I was planning to buy at 8.00 support or on the first candle to make a new high. It's an earnings winner with a float of 20M. This was on the 0.05 tick rule and I lost some money before buying a stock on the pilot so it affected me mentally when the setup was telling me I was good to go. So missed out on a nice 60-70c/share profit.
Then this morning when everyone in the chatroom was talking about $IDXG, I should've kept looking at it. It was an easy buy above the break of 0.33 pre-mkt, then again on the market open when it broke above the open at 0.47 at 9:58AM then again on the 2nd dip at 10:22AM at 0.65.
1.Always buy the first or second dip or first whole dollar break at the open as it's the safest strategy.
2. I've said this a million times but always always check the failed spikes history for any low-float stocks.
3. Don't hesitate on buying the first dip at the open on a stock with good news on the 0.05 tick rule. Just widen your stop, reduce your position and if the r/r is good go for it.
4. Keep watching stocks that have made new highs regardless of how high you think it's gone up and look to buy on the dip when you see signs of reversal especially a stock that hasn't gapped up that much from the previous day which means there's lots of support and it has room to run.
I've been on a losing streak lately but only because I'm trying different setups so now I know what works and what doesn't. I don't know why I feel like I'm getting closer and closer to consistency but something just tells me that and I'm really excited for the future. :)
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