It was my first day "in the market" today. I paper traded using Stocks to Trade. I'm not done - it's my first day at work, so I'm going to stick around and see the end day market. Just studying the Trader Checklist while I watch these charts - mostly for fun and education, really.
I had no idea how fast it all moves, especially in the morning. Before I tell you how I lost my shirt, let me tell you that today was about learning my tools, seeing the moves, and finding out where I how/where/why I would get screwed. I mean, I'm still finding out, and my studies should have prepared me better, but let's be honest: "shit" is just a word until you put your hand in it.
My first play investment of the day (or ever, really) was LFAD. I went long at $.09 and jumped tf out. I thought the stock would play well because their earnings report was coming out today. I know not to play THROUGH earnings day, but I was expecting a spike. As soon as it dropped, I was out (it wasn't going according to my expectations.) I got out at $.08 and it's down to $.04 so hey! Congrats to all of you shorters!
Here's what I learned: I didn't do my homework. If I had, I would know that the support was - historically - way below my point of entry and while it was up on Friday, there was nothing to suggest or indicate that it was going to keep going up. Maybe if I see the earnings report, I'll consider playing it long again tomorrow. It's an active little guy. Anyway.
I always played ALYI. Again, I went long. I'll probably only go long for a while. I was in at .03 and expecting a spike as a result of their new partnership. I got out at .029 because it wasn't doing what I expected. Again: HOMEWORK. This stock isn't doing anything. It hasn't for a long time. I'm trying to figure out why it's on the watchlist. (I mean that sincerely. I want to know why people are making these choices so that I can make good choices.)
Then I find out, it partnered with itself. HA! It announced a partnership with a company that it owns. That's cute. Its price dropped to half, but it's back up to where it started now. Hm.
I really didn't know what to do with COTY. It looks like it's upward trending. I was watching it because it was on watch lists. I don't know what the catalyst is. It was kind of off my radar at it's price ($9.3 at the time.) I kept an eye on it. I guess it's on the lists because it's way up? Because of a volatile Friday? The news about it is bad. Investors threatening to pull out. Supply problems. And yet...
So, as Sykes says, I guess, don't trust the news, trust the stock. Trust the pattern.
I'm long on a couple more tickers: NGTF, SHMP, and IHRTQ
IHRTQ is trending upward for days now. Maybe a breakout? Maybe a crash?
SHMP is also upward trending, but it seems to be mostly morning spikes. My plan is to hold and sell into the spike tomorrow. Same with NGTF.
They're both looking a little ugly at the moment. I think this is why Sykes doesn't usually trade during the middle of the day.
I've learned better than to track more than three stocks at a time.
I've learned to only trade one stock at a time (not evidenced with my current practice. Maybe only DAY TRADE one at a time?)
I'm learning how to use the tools and read the charts.
I've learned that everything moves really fast. This is something I will be able to get used to.
If anyone ever asks me for advice, I will tell them PAPER TRADE FIRST. So glad I did.