06/02 – down side of trading (VKTX/SESN)

I started my day trading career with Tim Sykes and when I wanted to learn more, I joined Investors Underground. The DVD’s that helped me the most were Tim Grittani’s Trading Tickers and Nate Michaud’s Tandem Trader.  Software that has helped me in my early years was: Trade Ideas software. Now I use FINVIZ ELITE. Click on the highlighted links for more details. For my main page, please click here: Day trading for beginners

 

PM watch list:  CRON, SESN, VKTX, KTOV, TRXC, ARWL, ASNA, GERN, MEET and VSAR (all short biased).

I always have something between 10 and 20 stocks on my watch list for day trading. I usually only trade one or two tickers on this list. I also have roughly 5 to 10 stocks on my swing list. My main guide/indicator is volume.

My plan on VKTX was simple, short if 10.00, 10.80 or 11.20 resistance fails and short (or add if already short) when 9.00 support fails. Easy support and resistance analogy, right?

SESN was a bit of a misser. I wanted to short when 2.40 support failed. This level was completely disregarded, because someone dumped a large amount of shares. Then I missed the 2.40 entry again, on a rebound, because of Short-sale Restrictions.

TRXC was definitely also on my list, but I was too late and I did not get any locates and available shorts dried up.

I missed my chance on ENPH too. This was because I was tied up in VKTX.

All in all I am down on the day. Nothing spectacular. This was also an unavoidable loss. Not all days are winners. Not all weeks are winners. Just know I am still earning USD 1,000 per week on average. And I had a good few weeks too, until VKTX spanked me. A well deserved spanking though!

One more comment. SESN, VKTX, ENPH, CLNE and KTOV all have short sale restrictions on right now. I do not want to jinx it, but I am sure this is all algorithmic trading. They have one thing in common, and that is increased volume. Volume, means interest. Interest in a ticker, means price action. Price action, means trend. Trend can be analyzed. Know that these machines have an upper hand, when it comes to trend!

VKTX

VKTX smoked me again. Luckily not a big loss, but a loss none the less. This ticker has a life of its own it seems. Just kidding. That support of 8.85 at open held like a charm and the stock is now charging up. (UPDATE: in hind sight, I could have held the position, but I cannot see in the future).

SESN and TRXC

I do not want to go too deep into these, as I missed these. Fist I did not have shortable shares available on TRXC. And I missed my chance on SESN as this baby dropped and I did’t get my fill. What I do want to show you is the similarities in these two charts. They were moving hand in hand it seems! On the one minute chart you can see that both were bouncing a the same time.

SESN vs TRXC 20180604

2. SESN vs TRXC 20180604

My main rule is to cut losses quickly. My other rule is to never add to a losing position. The latter should only be done when it is part of your plan. Apart from one trade, I have never, EVER, made money by adding to a losing position when the trade went against me. Even when it was part of my plan. Keep in mind, when adding size, emotion start to take over. Keep your mind clear and trade accordingly!


I started my trading career with Tim Sykes and when my breakout strategy did not work for me anymore and when I was lost, I joined Investors Underground. The DVD’s that helped me the most were Tim Grittani’s Trading Tickers and Nate Michaud’s Tandem Trader.  Software that has helped many trader can be found here: Trade Ideas software.

 

 

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