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.
Pre-market watch list: AXON VKTX TRXC ENPH TXMD ARQL All short biased.
Over all, the volume was there today. I am quite pleased with my strategy at the moment. What I do is short over extended stocks like VKTX, AXON, TXMD and ARQL. The other thing I do is that I look for either support or resistance. I used these to short into. Keep in mind that you also need to check where the next support or resistance is, to either cut your losses or add to your position. Also, keep in mind this works for me and might not work for you. Unfortunately trading is 50% psychology. Which means, people will follow each other like sheep. That means that, if there is volume, sheep will follow the trend. The more volume, the more trend. The more average volume, thus more interest from investors, the more the trend will be followed based on market (PSY, S&P, DJIA ect) Famous stocks that follow the overall markets are NXFL, FB, TWTR, TSLA ect. ect. I am not into large caps, I trade penny stocks and occasional mid caps.
Do not join the masses
VKTX was my baby for today. Previous resistance was at $10.30, so this was kind of like a no brainer for me. I added some when $10 failed and added some more when the 50 EMA failed around 9.75. Covered my position on or around $9.40, $9.50 and $9.25. This is doing some power buying into that offering of this morning. My bet it will squeeze a bit more and then drop either later at lull time or after hours. I am not anticipating that move, because it is reason for squeeze too.
AXON was a more out of the gate, small position short. It was more of a gamble then an actual well though of trade. But I needed to add something with that volume. I was hoping for more push towards $6.10 but was pleased with my $6.00 entry. My main reason for entering this baby, was that candle. People are selling into this spike and with 12 million volume that can’t be good and spells failure all over it! Also, the whole easy to borrow availability made it tempting to trade this.
NAIL AND BAIL
TRXC smoked me like a little bitch. Although 10 cents loss is nothing to cry about, I should not have entered when key resistance like $3.00 holds. That is a big no no in my book. Nothing to cry about, but would have liked some more crapping and not a small squeeze like it did.
TXMD was a nice little scoop and made approximately 30 cents per share. Same plan as VKTX. Short into previous resistance. Shorted a similar candle as VKTX, but did not get the move I wanted so I bailed.
Keeping an eye on things
SESN was on my screen briefly but this has been spiking of tat 2.45 support a little too much for my taste. Might be more of a Monday trade for me as this might spike more before the eventual fade.
Where did I learn this strategy?
I learned this strategy of shorting into overextended stocks from Tim Grittani’s Trading Tickers DVD and Nathan Michaud’s Tandem Trader DVD. Both have sections on this subject and I recommend you to purchase both DVD’s if you would like to learn.
If you want to have a more broader teaching on trading stocks, I recommend you to join either Investors Underground, subscribe by clicking here, or Tim Sykes Penny Stocking Silver, subscribe by clicking here.
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