11/18 – Know your weakness, study your trades!

I Started my day trading career with Tim Sykes, where I learned the basics of high risk day trading. When I wanted to learn more, I joined Investors Underground. They opened my eyes to new setups and gave me a wider scope of the markets. The DVD’s that helped me the most were Tim Grittani’s Trading Tickers and Nate Michaud’s Tandem Trader.  I use FINVIZ to scan for stocks for my daily watch list. Click on the highlighted links for more details. For my main page, please click here: Day trading for beginners


 

Introduction

The header is kind of self explanatory, is it not? Yet, I notice my fellow traders rarely do this. The thing is that all traders go through losing sprees. Which means consecutive losses that accumulate over time. My trades that I executed during the last few weeks were horrendous. The market makers smoked us in our blind spots. these were weeks of fake downs and fake outs. Support was the key last week, but there was also a lot of opportunity. Unfortunately I failed them all. And in hindsight a pattern emerged. What I notice is that stocks tend to drop at open and fail for the first half an hour. Meeting resistance first and then the tickers start crapping. Support then holds for most of the stocks. Especially stocks with news that fail to break out. Great examples are still GLUU and CZR.

On watch on Friday: AMRN – TXMD – GLUU – ON – CZR – FNSR – CRON – AMD and TRXC.

None of these showed pre-market opportunities and the volume was disappointing. I was looking at ON, TXMD, TRXC and AMRN at open. ON looked like the only one showing any opportunity. I entered a short position, with small size, at 18.40 but had to cover at 18.42 when 18.25 held a few times. I was hoping for a wash from 18.25 to the low 18.10′ but that never happened. As said before, the short money is in the first 30 minutes. Also, she reclaimed VWAP and then the 20SMA which are rather bullish IMO. So I covered my position and moved on.

Afternoon trading has some nice opportunities too. But I was done for the day. One thing that the market taught me is understanding the pattern you use. Yes, burn your butt a few times, but don’t let it infect your whole body. The market burned me the last few weeks, where I made good gain and gave it all back! I did not want this to happen again.

New rule # 1, nail ‘n bail. If my first trade was successful. Take your money and leave the desk. Statistically I have 80% chance of making a losing trade when I make more then one trade. This market is about support, not resistance. The market seems to be recovering and that means big boys are buying.

Rule # 2, set goals. If you do see an opportunity you cannot miss, trade accordingly. If you made 10% on a position, use only 3% of that gain as your next gain% and use 1% as a stop loss. This way you can only lose 10% of your daily profit. Unfortunately, this does not work on small accounts. Unless you have a cheap broker.

Small swing idea – SESN looks reversing. I’d be looking into this ticker if she reclaims 2.00 and target something like 2.50 – 3.00. I wouldn’t size in much though as the chart is still dying and falling. Not looking for a dead cat bounce.

Also EXPR looks ready for a bounce. I will watch this ticker the next few days and see where it might go. The higher the better, then fade. This in an intra-day short opportunity.

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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