Jumping in the market

I realized over the weekend once again that I was just a little scared.

I mean, I want to be in the stock market, I want to use it to make money… but it can be a scary thing… I don’t want to lose money, don’t want to make the wrong call.

This is how you learn though. I may have made the wrong decision today in thinking that I am going to find a couple of stocks that I would purchase no matter what… but I had made up my mind and I was going to do it. I was patient and made sure to find stocks that I was comfortable with… but are they the best buys that a trader has ever made? Probably… not.

Let’s hop in.

HL

from ThinkOrSwim

This is what I was looking at, just about, when I decided to make the purchase on HL. I bought at 6.60 with a goal of 6.74. You can see that is right about at a level of resistance, which depending on which chart you look at is floating anywhere from 6.66 to 6.75. I bought this stock because it currently in a bit of consolidation but still in the midst of an upswing with not a lot of resistance above it if it can get past the 6.74 mark.

I will admit that I also have a little bit of an emotional attachment to this stock because I found it and it looked like a good buy. I’m not exactly sure where this one will go — are you ever really sure? — but at the same time, there is a lot of good support for this one as it follows the channel directly to it’s left which turned in to a bit of resistance a few days ago. We will have to see which direction it breaks out of this sideways pattern and be ready with stops. Mine is currently set at 6.53.

It got all the way up to 6.72 and then broke back down to my entry price again. Although volume has been pretty good today, it is going to take a big push from the bulls to get it through. When it initially fell through that same level it did so on about 11 million worth of volume. Currently today it’s only sitting at about 4.5mil. We will have to see if it can pull together the strength to break through and if buyers was to support it.

SPWR

from ThinkOrSwim

So this one was a little more impulsive than HL. I found this today as I was doing a search through a custom search I scan I had created.

I will have to do a post on that later.. it is something that I am experimenting with a lot right now.

One thing that I am really interested in using as a tool is fibonacci. I’m not sure why, but I am so intrigued as to how the numbers always work out or are at least close if you set up your ranges properly. When I found this stock it had already broke through the 8.5 level and was still on it’s way up. Seeing as these levels can often act as support and resistance I contemplated a lot and then though what the heck — let’s just see how it goes.

entry: $8.62 goal: $9.23

When I took that screenshot, which was just a bit a go it made it all the way up to 8.82. It’s currently sitting at 8.75.

I would have liked to catch this one a little bit earlier in the run up. It would be nice to be up maybe .3 or .4 instead of .15, but I also understand that I am learning this process still and figuring out how I can find those stocks a little bit quicker and more efficiently.

Overall

So today I feel like things went well over all. There are a couple of things that I clearly need to get better at at this point:

  1. coming in with a clear plan and some stocks that I think have opportunities.
  2. Get rid of distractions… I’m still a little in to twitch. Getting rid of that and being able to focus on the market will be key.
  3. To go along with #2 — my inefficiencies to find the stocks quickly and make good picks is frustrating to me. It has really been only a week since I have been actively trying to invest so I am telling myself it’s time to find set ups that I like and figure out ways to find them.

Which leads me to my main goal: learning how to scan for stocks better. ThinkOrSwim has a great tool called thinkscript. It’s basically a programming language for it’s scanner and chart screen. I am trying to figure out ways to dig in to all of the stocks to find ones that look like they are preparing themselves for a jump so that I can be ready when they do. I think the name of the game really is just patience, learn, discipline. I want to make money, grow my portfolio… but I also want to do it on the back of learning a skill that will scale as my money does.

I also have to figure out how I am going to fit all of this in to a day.

I want to make sure that I continue to journal and write about what I am learning and how I am executing. That is how I am going to get better… slowing down and taking the time to do it is the key to that though.

We will see how these two picks work out… but in the mean time it’s back to the drawing board on searches and trying to find the next best thing. Gotta figure out who I am in this crazy world of the stock market it.

Keep It Green.