10/11 – greed, that devil in sheep’ clothing

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. Click on the highlighted links for more details. For my main page, please click here: Day trading for beginners


 

Introduction

Today was a stupid day. Lets start with that. And there is only myself to blame too. Opportunities everywhere and I took ’em. Everyone of ’em! And they all failed. Why? Because of greed.

I always trade by plan, which is the cause of missing out on the big moves. But today was different. I had some things to take care off. So I had to leave the computer. CRON was heavy at 9,18 and I though well, this most definitely is going down. No doubt. The pattern was downwards and those bidders at 9.15 gave me the conviction that this will go lower. A lot lower too. Looking at yesterdays drop and climb back to 10ish, my thought process was simple. This is a down trending stock, jumped up a bit. This means that there will be a lot of traders hoping for a breakout of 10 and retest that 10.50 heavy resistance. My plan was to wait for 10 to fail and 9.50 failed.

This is where the fun started. Ok, 9.50 failed and I entered my first short position at 9.40. She dropped to 9.04 amd,u target was 9! Then CRON climbed back up with that damned green engulfing candle. (for newbies, thats a bullish sign! I was stopped out at 9.40 (break even). When she failed again at 9.40 – 9.30 I re-entered that 9.30. When 9.15 was heavy I had to go out. You got to do, what you got to do, right? I prepared my limit order at 8.90 thinking this was a generous place to start with. She touched that blasted 8.94 and climbed back up. She took me out eventually at my break even stop at 9.30!

You could say this was pure greed. My original target should have been 9.00, but I was thinking, what about the big move? What about the sellers at 9 dollars. Surely, like last time, she will wash out at least 15 cents from that whole number drop? NOOOOOOOOOOOOOOOOO CRON had to find resistance.

To be honest, I am still wondering where I went wrong. Ok, I should have covered anywhere from 9.00 to 9.30 and not wait for 9.30 to be tested again. that much I understand. However, the plan worked IMO in @ 9.40 out at 9.00 and re-short at 9.30 and cover again at 9.00.

10/12 – failed one failure now maybe even more

Today I have the same plan as yesterday and so far things are not going my way. CRON is way too strong and the news is some legalization on October 17, 2018. She is very manipulated. I see this, because traders keep marketing (using market orders) when they enter positions. Also, I see some bidder accumulating shares, which is a bullish sign in my book. CRON is not a stock to play too much size on too, because she is strong and definitely a big player, considering she is only a penny stock (kind of) in the whole marijuana hype.

Anyway, as an update, I want to give my trades a bit more room and get out at resistance in stead of break even and get out when support breaks. Key support off-course. But with a tighter plan. So far this is not working for me, so there will be a lot of tweaking during the weekend. Am I wrong for trusting my resistance levels?

To wrap things up, I do think I am greedy. However, I am also not looking for that home run. Something that hasn’t happened in a long while. The markets are contently changing and I try to change with it. I always have my own niche, which is kind of simple really. I look for a hype then a stock that I know how to play. I play this stock over and over again until it doesn’t make money any more.

My final short was at 9.80 and was hoping this one was going to crash. I totally ignored the signs (VWAP reclaim, VWAP bounce, 20SMA bounce). My plan was simple, as soon as the buyer that was accumulating shares stopped buying and start selling, CRON was going to crash, hard. As she has done before. However, I was stopped out at 9.75 (breakeven) That seemed like a strong resistance point. So I risked that level. Maybe I should have covered my short when I had the chances at 9.65. But I wanted the full Monty. A wash from 9.50 to 9.35. Which never even got close!

My strategy did not work today and yesterday and I will try to focus on crap and fail patterns more. The thing is, though, that the money is in the parabolic short and the push and fail shorts. Crap and failing support does not provide enough gains to cover the risk long term, so you need the bigger move. But front side shorting is also more risky. My research has shown me that there is a 30% chance of failing a short when you short at previous high of day. The risk is even higher when you try to short near the current high of day (like I did today).

Anyway, this wraps up my last few trading days. Nothing special other then paper cut losses. I don’t make a lot of money, but I am happy with what the market gives me. Today it was a spanking. Next week will be better. TRADE SAVE!


SERVICES THAT CAN HELP YOU

For trading large and mid caps is hot business, Tandem Trader offers some insight on how to trade them.

Kindly click the following link here for more info on Tandem Trader:

Tandem Trader DVD

Also, if you are interested in short selling, you should check out Trading Tickers, which contains two important strategies 1). shorting parabolic moves and 2). buying breakouts.

You can find it by clicking the following link:

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.

  • 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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