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.
Watch List for June 26, 2018: XBIO, TRXC, AXON, GERN, ENPH, CLNE and VKTX.
Do I have what it takes?
Some people seem to have it all together, don’t they? Fancy cars, never afraid to enter a trade and especially the large gains they show in Twitter. Doesn’t that just make you feel awful about yourself, especially when you have a losing streak? I’ve been through them a few times too. It felt like there was no end! Lucky for me I know who can help me become a better trader. Also, taking time off trading helps sometimes. But when I am really lost, I join a service like Investors Underground or Pennystocking Silver to see if there is a different edge in the market or that I might be overlooking something.
Mind you, this happened not too long ago. Last year this exactly what happened to me. At first, I took some time off. When I was on holiday, I did not do any trading for a few weeks. When I came back to the office, I had a few good trades. But the marked seemed to have shifted. Block chain madness had arrived and I could not follow the hype. The only hype I did follow was the yearly shippers hype (TOPS, DRYS, DCIX ect). But that was because I have been through these many times before.
Block chain just wasn’t my thing. I do not believe in anything, without fundamental value. That made me bearish from the start. I kind of chuckled every time bitcoin or Ripple made new highs and I laughed my ass of when people said they actually understood the markets. They don’t. They say they do, but they don’t. Mainly because they fetishise on something that needs to develop, but has not yet been realized. Buying something, that does not exist yet. The basis of bitcoin is not the application. It is as simple as mining. you have computers mine these coins. So the fundamental value is the speed (and availability) of these computers. Sorry, but that is beyond me. What I like about equities is that there are fundamentals that can be verified via a simple google search. Financials can tell me if a company needs cash or has any toxic debt. Filings can tell me if there are any offerings. There are websites that offer any potential news or catalysts. I was missing these things on block chain.
I had a few decent trades on block chain. Mainly XNET was my baby and also DPW. however, I did not like DPw because of the major spreads on them.
Coming back on today, did you see that crazy spread on TRXC? That was some scary price action! Not the best setup you can wish for. TRXC can go anywhere really with this looming 52 week breakout at 5 dollars.
Some players like to trade current action. But that is not for me. Mainly because you need a massive account that can handle the risk involved with fast moving stocks. My capital, at this moment, is far from that of the big boys. For some reason, trading these tickers does not work for me. The setups seems to have changed from that,which I was used to and I am not seeing the right opportunities. These setups involve breakout patterns, heavy resistance and a catalyst. You can have a look at Tim Sykes videos on Youtube to have an idea on how to review these tickers. His videos have helped me in the past. They are called “the traders checklist” and cover a few topics about which catalyst are interesting, he talks about price action and has an important chapter about risk. Something that is equally as important as any other subject in trading.
RISK vs REWARD
Although risk is something in my mind and is always under review. My risk management is as simple as cut losses quickly. For me, it is difficult to give a ticker room to breath. Basically, because we can always re-enter a position. I am more focused on the reward side. One major factor to my personal success is that I do not trade that much and I do not suffer from FOMO, Fear of Missing Out. Yeah, I was that kid in school who did not care about the latest trend, the hottest thing or needed to know the latest gossip. I was more of a loner, I did my own thing. Yeah, I was bullied in middle school, but picked up martial arts and by time I reached high school and college/university, I was disciplined enough to 1). take care of myself and 2). was still self sufficient and was able to do my own things.
My daily gain, that I try to reach, has been USD 200 per day for almost a year now. Some days I make USD 500 and some days I lose USD 2,000. That is part of trading I guess. I do not revenge trade and I hardly feel bad about it. I used too, but then again, I used to have a bigger account. I notice, when I have some success, I also become cocky and tend to take more risk. When breakouts were hot in the market, you could easily make USD 10,000 one day and lose USD 20.000 the other day. After a losing streak I took out my money, bought a house and made sure I wasn’t depended on large expenses anymore like rent, mortgage or lease/loan expenses. All this has made my trading more easy, because I am not depending on any “large winnings”. I have a debt free life and no large responsibilities, apart from my self.
Feel free to re-blog this post. If you found me via Twitter, please follow me. Also, I am curious about how you manage risk and what setups interest you. Leave a comment in the Twitter thread so I can read it too. Thank you!
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