goldman

Hello Tim, hope you can make a youtube video on how to avoid the dreaded gap down especially when you are in a buy position already?

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goldman

Hello sir, what's your tip if in worst scenario the trade will go against you in strong movement where you have difficulty getting out? Anytime, worst news or big holders' manipulation could happen that could cause a big drop of price or even gap down in a blink of eye. Hope you can share your approach on this.

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goldman

Hello sir, what's your tip regarding about strong movement against your trade in split of a 2nd? How do you mitigate the risk on this? Anytime beyond our expectation worst news or manipulation from big holders could happen. In scenario, I'm sure it's difficult to get out if it would happen in just a split of second. I'm just thinking in advance on this on how to deal this accordingly. Hope you can share your expert advice.

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goldman

never chase sharp move up; if you do, your predefined risk couldn't hold because more often major pullback would strike sooner like this CPRX ticker. After 30 minutes up move, a major pullback around 30-40% followed. You're out if you have stoploss only at 2% level as shown below:

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PocketPAT

WOW. Scary panic on RHE. It's now trying to bounce from key level 3.82, but I'm not trusting it until it hits a HARD multi-term key level. a little further down near 3.55. ESPECIALLY after breaking premarket support. I would look for it to bounce from 3.55 and prove itself up to 3.70 without weakness before I would enter at 3.70 for the true long-range bounce. Super sketchy.

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goldman
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goldman May 03, 10:19 AM

what's the catalyst for this?

PocketPAT
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PocketPAT May 03, 10:36 AM

@goldman seems like a technical breakout from yesterday’s highs which tested last Friday's highs. They released news premarket Wednesday about expanding their business by purchasing $28.5M in nursing facilities as well.

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PocketPAT

@goldman Here's a quick example of the 2DR setup from PRPO today. This is what I mean. The first dip will either bounce to set new highs or dip further at the market open. This morning it dipped and didn't bounce, and the following bounces failed as well (which they almost always do) until it hits long-term support at a key price level of 4.50. Then it TRULY bounced and RECURLED back to the market open price, but couldn't break the Premarket HOD (high of day). This pattern happens just about every day. First Dip, bounce, fail (sets HOD); fake dip bounce; fake dip bounce; 2DR bounce recurl back to the market open price or maybe even BREAKS the high of day. This 2DR on PRPO today bounced a full $1, so if you had 1,000 shares, that would be a $1,000 profit.

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goldman
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goldman Apr 30, 10:37 AM

@PocketPAT I fully understand now. Thank you for showing me this.

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PocketPAT

I've also decided to add a 2DR Statistics section to my trading journal, to gather data overtime for how 2DRs tend to perform. I have ten criteria to sort long-term to find ideal 2DR days of the week, catalysts, entry levels, HOD breakout probability and range after HOD breaks. This will be both interesting and beneficial later this year.

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PocketPAT
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PocketPAT Apr 29, 12:56 PM

@goldman it’s a term I made up for the second true dip buying opportunity. Usually the first dip buy opportunity is right at market open. There may be two or three more dip bounces, but they will typically fail. The SECOND TRUE dip opportunity is usually the bounce from long-term, multi-level support, which recurls back up to the market open and/or breaks the high of day (HOD). The only real dip opportunities are the FIRST right at the open, which can quickly break the Premarket HOD

PocketPAT
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PocketPAT Apr 29, 12:57 PM

@goldman — because of so much momentum/volume and the SECOND dip opportunity, which slowly bounces from bottom support after momentum has faded from market open, potentially breaking the HOD set by the first dip’s failed bounce.

PocketPAT
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PocketPAT Apr 29, 1:03 PM

@goldman 2DR - “2nd Dip Recurl” (usually after two to three initial dips, bouncing from it’s true long-term support level).

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PocketPAT

Still watching NXTTF for further dips. ARCI looks to be dipping further, but volume is low. CPRX didn't dip enough for me to justify an entry, but in all actuality it's a little too overpriced for me and I shouldn't be on my watchlist. I could only get 1,000 shares with my small account and would need a big move just to cover $200-400. Even on a Friday, I don't like hoping for big moves, that's how you lose big. I like to expect to make enough gains of a big move, even if I only get a small piece of it.... Still watching.

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goldman
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goldman Apr 27, 12:09 AM

@PocketPAT what supporting catalyst you are looking for NXTTF? Is catalyst necessary?

PocketPAT
PocketPAT Apr 27, 9:57 AM

@goldman having three $5k accounts, I would ony be able to get 800 shares of CPRX; and in order for it to be worth using a day trade, it would have to bounce 40 cents ($320 profit potential) and the range of support and resistance is too small to hope for that, so it’s not worth the attempt. It would have had to bounce from 5.80 to 6.20 or from my ideal buy level at 5.70 up to 6.10; but it was (at the time) not dipping down to my ideal support level and hard resistance was below 6.10. So basical

PocketPAT
PocketPAT Apr 27, 10:02 AM

@goldman for NXTTF, it was 1) up on a parabolic run up, 2) holding support at a multi-month breakout level, 3) on a friday morning (fridays are bullish) and 4) up on good news. Ideally you wouldn’t to chase it, you would wait for a dip buy opportunity to confirm that it’s still supporting itself; but because of all the catalysts, it had a high chance of breaking out, maybe retesting or finally breaking it’s previous highs at 0.88.

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