Chapter 1 Trading journal #11 - 01/18/2019 +$11
Lessons Learned:
- Always consider how far the stock is extended — is R/R still there?
- Short the pops ( have to have a really strong thesis to short consolidation — if yes, get out the moment it is not working — do not stop out)
- Watch VWAP — better to short flat than ascending
- For HOD rejection setup on the 1-minute chart -always wait for second wick and volume divergence + rejection on the tape as well.
Remember = your size is 100 shares
$GEVO The stock was overextended on the short side (red flag for an entry here)
- I got short into consolidation — wrong completely
- Bids were ascending and holding ( one more red flag)
- The right way to get in if I had such a strong conviction is to wait for a pop.
The right entry here was on the pop!
$TYME Big picture view this was my setup
- HOD rejection with lower high
- it was kind of my setup and I took it, however on this one I need to do more research just to see why it didn’t fade from this point.
- I guess the fact that it’s actually sold off before and right now the stock was bouncing (unlike my regular setup, when stock gaps up premarket, holds the level, dips, comes back by afternoon, rejects around HOD, and makes a new low high).
- So this is an important variable I need to keep track of. What’s on the big picture is it still overextended on the long side of the market or is it already a bounce to the means after oversold conditions?
$BIOC That was my ideal setup here — HOD rejection — basically the same setup I was in $TYME and I completely missed it
What’s the difference in variables?
- $BIOC never extended too much above VWAP and was flat on VWAP, while TYME was ascending on VWAP ( so this was the red flag for my entry)
- $BIOC had a clear negative catalyst
- The resistance zone I was watching for 3 day VWAP did exactly what I expected = rejection on the volume.
Should have stayed away from this trade
$CCCL This was my A+ setup here
Updated entry now will be a) look for volume divergence in the wicks b) enter on the second wick — that goes higher, but volume is less c) only if it rejects on the tape
$ACB I still do not know what happened with this stock today. Stan called it out. Traded it only on the tape. It was really clear.
LL: I was spamming with the orders bottom of the range — and got filled 150 shares instead of 50. My current size is 100 and whenever I size in more — and take losses — I’m getting red right away on the day. So this was wrong I need to be very diligent and consistent with the size I trade. My size is 100 shares now. Follow it.
- Do not enter at the bottom of the trade, keep track of the bigger picture — the stock was quite overextended on the short side. Why enter the trade when there is no risk/reward?
- The second entry at the end of the day clearly didn’t have an edge here, I was just throwing shit on the fan. That is a wrong mentality — all my trades have to be one of my A+ setups.
a) morning drive via tape and vs resistance levels
b) HOD rejection | Low High
c) Squeeze from the hell
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