07/09 – BBOX/AXON covered before reversal

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


Watch list for today: BBOX, AXON, NNDM, TRXC, SESN, TXMD, ASNA

I was watching BBOX and AXON pre-market to have a little feeling for the current market.  My main watches were them and NNDM, but NNDM had no borrows at open. I could have been patient and waited a little but you never really know if borrows become available again. In hind sight I should have traded CLNE and SENS and a lot of other tickers. But my eyes were on AXON and BBOX.

BBOX was a crazy short. Wanted to trade a new pattern. Shorting stocks on the first day. I chickened out soon too, due to lack of experience and also, I just shorted the bids and did not follow a plan. This ticker was all over Twitter so I knew there was plenty of interest.

Volume was there, so I could have entered with a bit of volume too. I was expecting more of a push towards 3.00. At open, this ticker just dropped to 2.20. I entered my short positions on a 2.50 buy / dead candle and covered into a wash from 2.40 to 2.30 for an average gain of 15 cents per share. Nothing spectacular if you ask me. Not my thing either. A better trade would be a 3.00 (whole number) reject above VWAP and add size into consolidation below VWAP. An imminent wash would be ideal around the pre-market lows and cover into a washout from that to something like a 50 cent per share average gain.

AXON was not a new trade for me as I have traded this ticker many times before. AXON has a tendency to reverse, so I was careful not to overstay on this trade. Again, this trade was not a planned trade. I was hoping AXON would test a 3.50 prior resistance. but what we got was an early reject of 3,00 at open. I shorted this when the 2.90 / 50 EMA on the one minute chart was rejected and added to my position when 2.85 support failed. Wanted to cover into a wash from 2.70 to 2.60 but ended up covering into a small ramp to 2.80. Last week AXON crashed through VWAP and I did not feel like that was a risk I was willing to take. In hind sight I could have stayed anyway and see what VWAP or the 50 EMA would do. But I do not need to overstay, because I already made my days money. I rarely overstay these days because I have low daily goals. My life has been crafted to be able to withstand blows and, on paper, I could live from USD 500 monthly gains.


NNDM ideal chart

I did not trade this ticker, but this looks more as something I would like to short into. That beautiful reject into that 2.60 and add size when VWAP fails cover into that 2.35 – 2.30 tiny wash for a nice 25 cents per share gain.

NO FOMO – A little history into my early trading

I see a lot of new traders wanting action. I was never like this. To be honest, I was scared to trade. God knows why the hell I started trading in the first place? I was working for a huge hedge fund at the time. I saw this company lose shit loads of money. Also making shit loads too. It was a diverse portfolio ranging from blue chip to garbage overseas companies like Seven West Media, an Australian Company. I was so inspired by what they did so I tried to copy the mentality. I could not.. Hedge funds work on a whole other level. I was missing the tools they use (as example, they do some extensive research into all levels of a company. They even valued a companies management and management style) and certainly had no clue what so ever on how to trade.

So I bought this bible of trading from Benjamin Graham: The Intelligent Investor. You can buy it too here: The Intelligent Investor: The Definitive Book on Value Investing. This book gave me an insight into finding low priced, but high valued stocks. I had a massive, one page per ticker spreadsheet which took me a day to update very week. I reviewed it all, turn over, EPS, moving averages and all sorts of statistics. It did make me money though, approximately 10% per week. However, that was not enough for me as I was spending most of my time analyzing a company. This was not they way to go. I’d rather spend 80 hours of actual trading, rather then researching a company. I mean, I could better work for someone, with only earning approximately USD 5 per hour!

So I started to google high risk trading. Found, like everyone I guess Tim Sykes and much later Investors Underground. Mind you, I found Tim Sykes, well before Tim Grittani made his millions or even before Steven Du started his trading career. Investors Live did his thing too (Nathan Michaud), but I did not really like their services back then.  Tim felt like the right choice because he knew which tickers where scorching hot. Something unimaginable these days where garbage penny stocks would sky rocked from 10 cents to 10 dollars in no time. You could easily short the ticker on the way down and cash in on decent gains. There was no real need to know how to trade. You knew where to find the latest Pump and Dump because they were all over chat. When OTC Pump and Dumps started to fade out, all the hot gurus started to diversify their strategies. NASDAQ was hot already so no one was surprised when people learned to ropes of Nasdaq trading quickly too.

I hope you enjoyed this blog entry! As always, feel free to share this post!

If you are interested in Investors Underground and would like to learn more, please click the link here: Investors Underground or if you are interested in joining Tim Sykes Pennystocking silver, please click here: Pennystocking Silver.

  • kindly note here that this should not be treated as advice, trade advice or any of the sort. Always trade your own plan, cut losses quickly and never follow any alerts. Always do your own research!
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