Pretty amazing week with continued large moves in retail and as of last Friday-tech!…would not mind this to continue! I ended the week with my best batting average yet of 81%…no surprise that nearly all of my plays were shorts. When I stand back and look at it, it truly makes me wonder why I even go long. I have been slacking on weekly recaps, I am now committing to be more diligent and utilize the slower summer mid mornings to get on a regular blogging routine.
Heavy hitters this week for me were the following stocks, 95% of all of my plays were in this small handful of stocks. These are “go-to” stocks for me when the set ups are there:
NKE, FL, DKS, NVDA, YHOO, AAPL,AMZN
Finding stocks that you are familiar that move in conjunction with the market I think is integral for success. Banks are another sector that could be added into the mix as they typically follow the market, although with the sector rotation that seemed to happen this week the flow didn’t seem to be there.
Here is a snapshot of a trade I took late today (2:30pm EST) on NVDA. This is something that has been really working for me on the short side, I like building into a short into prior resistance and then adding upon confirmation. I was hoping for a bit more of a bleed but making $1.30/share on a .30 risk is not too bad of a scalp.
Time for me to go surf. Have a great weekend, everyone!
One lesson that has really resonated with me lately is the power of starting small. One of the bad habits I am working on breaking is starting too large of size prior to actual confirmation. Stocks with tremendous range do not actually require large size to produce large gains and I find I keep myself in trades when the size is smaller. Funny how that works?! Staying disciplined with this new strategy is proving itself within my winners and I am looking forward to seeing what this does to my win/loss ratio and subsequent size of winners relative to my losers.
Continue reading Simple disciplines can move mountains
One important piece of improving my trading has been recognizing where and when my winners occur. I have had significant success in tickers that have consolidated after a morning run and are just slowly edging higher above VWAP in the afternoon session.
Continue reading Afternoon Runners
One of the many great things about earnings season are the possibility of shockers in a sector that causes a bit of a ripple effect. Last night LULU came out and greatly disappointed, resulting in a crushing drop overnight:
Continue reading Sympathy plays
While in the IU chat room today, a biotech stock started going wild. Nate’s comment to the action made me shove away from my computer and just watch the action. The stock ripped up a buck and promptly stuffed for $2. Nate’s simple comment was “..yikes. No edge there”.
Continue reading What’s your edge?
Closed out the week with an incredible 25% gain, largely due to the following plays:
Continue reading Weekly recap and this week’s plan
Nate from Investors Underground posted a solid reminder on Instagram today that is so relevant for ALL traders but particularly for new traders:
Continue reading $JNUG review and Monday plan
Aside from finding 1-2 strategies that you recognize in an instant; correctly adding is the third most important part of a successful trade (the second being adhering to your stop if the trade goes against you).
Taking the opportunity to add will enable a couple of things to happen:
- keeps your position small so FOMO is not present but you aren’t risking too much too soon. You are in without danger of too large of an early stop.
- enables you to grow your profits while continuing to minimize your potential loss as the trade proves your directional thought correct.
MYSZ had a massive gap down on 2/16 and had maintained its pre-market trend. I had taken the quick rip at 9:50 am and was out in 10 minutes for a solid .20, which made my day goal considering the r/r and size I had taken but I had a feeling it wasn’t done, so I set alerts and left it alone.
VWAP proved itself again when it held the price, so I started very small just to be in for a feeler. Whatever small looks like for you, keep it manageable, as you have to remember that adds can only occur when your directional thought proves itself RIGHT. This is so key and why so many new traders (including myself at one time) struggle and/or fail. This was such a pivotal moment for my p/l when I reversed how I approached starting into trades. You are never going to catch the exact top or bottom but starting small with a theory will get you into some amazing trades. I have gotten so much better by nailing the correct direction but if you are in too big and wrong it can result in some larger than necessary losses. By the time I had added on washouts and also reduced by locking in some profits when it ramped, my average resulted in a .60 gain, which was awesome considering the risk moved to break even if I was wrong. Always play safely and protect your assets…and pay yourself along the way.
Like any business, developing strategies that you feel comfortable with and competent in actualizing is critical for success. One strategy that I continue to develop is buying the washout, the panic…whatever you want to call it. In fact, so much, that is often my sole strategy for the day as I generally trade a maximum of two hours of the day. It is generally the quickest play and often the most powerful in producing results. Understanding the odds and reading your play is important, though, as this is one that can be disastrous if you are wrong and stubbornly hold on. From experience, this has led to some of my largest losses in the past. As with any play, ensure you enter with a solid plan given the size you take. For me, because I usually enter these with fairly larger size, it is crucial that I follow my rules. It is important to also recognize WHY there is panic. A stock that is dipping like this because it is gapping down after several days down while in a positive uptrend has great odds and what I like to see on the daily chart.
Continue reading The power of your strategy-RAD and SGYP