I closed my OPTI position at 9:30am at .35 with a fee adjusted exit of .34846 for a 3.8% loss. As suspected yesterday, I was in a bad spot on this one. I thought there might be a spike at the open because there was a lot of Twitter chatter about them launching their new app along with the great earnings news from 2/18, but there was extreme selling pressure at the open and the markets were down. Sykes also sent a message in chat that there were some gap downs in some momentum stocks that could affect other plays. I just wasn’t comfortable here as my position was way too big and this one really didn’t do what I wanted from the start. I should have just cut it yesterday, but I saved myself $30 and a day trade by waiting overnight. However, I entered at the top of the range again, added to a loser, and didn’t read price action into the close because I was concerned with saving a day trade. These mistakes can be a real issue for me in the future. I need to focus on the highest volume big % gainers from now on instead of trying to force a trade. My bias about the earnings news probably added to my comfort with holding overnight, but sometimes it takes days or even weeks for this news to really spike a stock. When this one was only up 11% from the previous close and was slightly red from the open, I had a feeling there wouldn’t be much gap and I was right. I did, however, do a really good job of selling right at the open saving myself some time and money. I think this one could still present a good FGD opportunity with all the positive news, but there are a bunch of bag holders on the 2-year chart. I noticed that before I opened my position but thought the earnings would be good enough to push through them. So many mistakes on this trade, I feel fortunate I was able to get out with minimal losses. I still have a lot of work to do on this pattern but will keep trying to learn from my mistakes over time. On to the next.
I opened a position in NSAV of 30000 shares at .0249 with a fee adjusted entry of .025065 at 2:54pm as it was on a dip from the HOD/52 week high of .0254, the range was tightening, and volume was starting to increase. This one had a beautiful daily chart breakout at .0172 in the morning and was running all day showing good support at the .024 area so that’s where I set my stop giving me roughly $37 of risk including fees. I feel much better with my entry on this one as I didn’t buy during a spike, price action was basically sideways when I took my position. After reviewing more of Sykes entries on these FGD plays I see that I need to try to make my entries after multiple red candles if the stock shows signs of bouncing. I really think my entries on these plays is costing me a little here and a little there. While I have had some moderate success with this pattern, strengthening my entries might be able to give me more success. Looking at NSAV my entry should have been around 3:08 after some red candles, but my entry price probably would have been basically the same. This one did break my stop level at 3:38, but I saw a ton of buy orders coming in on the order flow and it quickly recovered back to my stop level and spiked from there into the close. I believe there might have been some hard stops at or just below that level that caused it to drop and quickly bounce back. I think I might need to adjust my mental stops away from round numbers going forward, but as long as I can see heavy buy orders in the order flow I will continue to play those stop levels the same way I did here. My thesis is that it could take out that HOD/52 week high and run up into the close where I assume it could gap up or spike to the .03 range tomorrow. There isn’t any resistance on the daily chart until you look back to 2012 where .03 could be a resistance area. I don’t think resistance from 9 years ago will necessarily make a difference, but I’m obviously not an expert. I think this one might be a pump of some kind as there are articles in January including it with weed, and now a crypto currency article on 2/12 causing this most recent move. I’m not going to stay too long with this one, my plan is to sell it into any gap/spike tomorrow morning.
I am going to continue to watch the same tickers that have been on my list over the last few days as they are all still putting in red days. I will continue to scan around 1pm to look for any other possible plays as these continue to put in red days.
INKW, OZSC, CRYBF, ATVK, CBDL, INND, ASTI, ECEZ, HIPH, BFCH, & ABEPF
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