07/13 -ENPH short – #nobigmoney

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


 

At market open, the following tickers had some potential:

1). BBOX: Doomed to fail with a looming bankruptcy, but she ran out of shares to short before I could get in. Also, My plan was to see what that 2.50 key resistance would have done and short into a failure of that or a failed follow-up spike from there.

2). TRXC: she did her usual thing. Crash at open, dip buyers come in and the price short up. This was not spectacular price action. I did short this when 4.50’s failed but covered the position when VWAP reclaimed. A break even trade.

3). ENPH: This seems to slow down at the moment. Shorten that 7.15 spike with an 7.16 average and covered around 7.00 – 6.90 like a little bitch. Nothing wrong with 15 cents per share, but it was a ridiculously small size. This should go down some further but I do not have the patience and this ticker has a history of reversal. Nail and bail. Nothing too it!

My total profit for the day is only a meager USD 60 on the day. This day was slow to begin with. All eyes were on BIOC, IZEA and other garage stocks I do not care about. I short garbage, but I am not a front loader on high risk, low float stocks. My niche focuses on stocks that have had a decent run and reverse from the top. My recent successes have been on stocks like SESN, NIHD, I, TRXC, excreta, excreta and have a minimum average volume of 1.50M and preferably something like 2m to 2.5m.

Average volume can be used to review that there was once interest, but people have moved on. This means that massive sellers come in to take their profits. That is what I profit from. After almost every decent run, there is a period of pullback. And that is what I short into. After a big run, bottom feeders will come in and dip buy at support. They come in and try to push a stock higher and run into key resistance levels like 4.50 – 5.00 or 10.00 – 15.00. Then the profit takers set in in and sell into these resistance levels.

When the stock eventually goes down after second run, sellers will start to close their positions into ramps and pushes, but eventually sell into support. This is also a place where stop losses, which are for pussies anyway, will be triggered and a selloff occurs. Give this some negative press like a down grade or what ever and see that baby flow down.

IN SHORT

I like to short at support as stocks fail and do not recover as easy. My research has shown me that this pattern works 77% of the time. I named this a crash ‘n fail pattern. I also like to short stocks that have a gap up and fail at or near resistance. This pattern provides room to add to your position when stocks fail at support, VWAP or 50 EMA. The winning percentage is lower then on the crash ‘n burn pattern, but does provide a more decent setup when things go in your favor, because you will have VWAP and EMA’s to guide your entries.

KEEP ON LEARNING!

One thing I try to tell myself every day is to keep on learning. I notice a lot of traders fail in the marker because they think they have found the magical sauce. I review my traders every evening. I read books and watch educational videos every weekend and when I have time during the week. There are so many interesting and educational videos out there, that I am surprised to see that so many traders fail in the market. you need patience too. Take your time to learn how the markets work and do not fear losing. That is part of the process. I have lost so much money! I have lost USD 20,000 once on a trade. It took me a full year to make this cash back. I sized in like a dumb idiot and panicked like a little bitch. Covered at its daily high and saw the ticker ramp back to the level I shorted! I COULD HAVE LITERALLY BE PATIENT AND NOT LOSE TWO YEARS OF HARD WORK IN JUST 30 MINUTES… Anyway.. that’s in the past. you could say I was CURed. After this loss, I realized I am not made to short anything below two dollars. Not with the size I was playing with. Also, support and resistance should be the leading confirmation to short or buy a position. $CUR, Shorted 50,000 shares at 1.40ish and was all out with a beautiful average of 1,80ish.. September 21, 2017, time was something like 9:35AM and out at 9.45AM. A very painful lesson learned that day! Respect resistance, respect support.. it is not just all about numbers and percentages because for the weeks prior to that loss, I could short anything up 7% to 10% and get out with a nice USD 2,000 profit.

Who can help you?

Keep in mind that Tim Sykes and Investors Underground have excellent services that you can learn from. They have plenty of information to fuel your thirst for knowledge. If you are new, start with Tandem Trader by Nathan Michaud and Trading Tickers by Tim Grittani, both exceptional beginners dvd’s with plenty if information.

Short selling is hot business. Both Tandem Trader and Trading Tickers have plenty of information on short selling.

Kindly click the following link here for Tandem Trader:

Tandem Trader DVD

Please click the link below for Tim Grittani’s Trading Tickers DVD:

Trading Tickers

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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