Chapter 1 Trading journal #3 - 01/08/2019 -$24
Day overview.
Although I finished red I clearly understand, where my effort should be applied.
The main thing is I have to be patient, and enter only either backside or at least after some confirmation on the front side. Basically, I have to hunt down the entries that fit my risk management. If not — let it go. I have some sort of psychological pattern “My lose won’t be big” — and this is completely wrong, with this mindset I will never be able to trade real size. From now on I need to track these types of thoughts and better take fewer entries but have real conviction and real alignment with my risk profile.
I also missed trading a lot, and I guess I needed some sort of rush.
Lessons Learned ( condensed from below)
- Volume can show you when to get out or get in, but it doesn’t work for holding ( unless this is a 10-second volume spike — fat fingers and etc.)
- Price Action is what matters most. If you don’t like the action — get out and reevaluate
- As HFT said it’s important to anticipate zones — where everyone will add and will get squeezed.
- 2 Stops at a time at any time after 10:30 am ( for now)
- Once again, the volume shows you the Time to get out.
Trading:
$AXSM I’m really happy I traded it quite actively it gave me some lessons here.
- No matter what your bias is ( based on volume or the fact that you know about ATM) price action always dictates what’s going on. I held $35 PnL in the money twice during a day and instead of selling, I got stopped out both times.
- With stocks like this, it’s ok to get stopped out right on the open ( you have to try to get the best prices, however after it — ALWAYS FUCKING WAIT for an entry in 5 minutes or 15 minutes — all entries, rejections were in place today and yesterday- instead I just kept stopping up and ruined my Pnl.
- Maybe consider a rule of 2 Stops at the same part of the chart — perhaps it’s time to reevaluate?
$VTVT As ADF says — the moment abnormal volume is coming in — go away. There is no time in 2019 on fighting with trends and etc. He’s right. It’s wrong to stay with a stock because there is not enough volume coming in to break out higher, but it definitely is absolutely right to get out the moment volume comes in and there is a follow through as well. The whole move starting 15:06 was pointing it out ( shorts were forced to cover into the close)
Lessons Learned Price Action Is the King, Volume gives you a clue when it’s time to say good buy.
$WATT Wanted to short into this level, but got stopped out. Realized the stupidity of going long, while thinking about shorting. Left it alone.
$VHC
Was watching it, didn’t want to take any position. Accidentally got one, got out right away.
$TOPS Shorted in the weakness — probably should have waited. Got stopped out. Re shorted. Covered half. Saw rejection. Shorted into it. Covered all. (got impatient)
$IZEA Didn’t want to touch it in the morning but got in right after the pop with $1.59 as a stop. Got 200 shares instead of 100, and the stock was holding up pretty good, so I sold 100 for scratch, was trying to re-short it, but never got a fill. Sold everything into resting orders at $1.43
$DCIX — Sympathy play here with TOPS.
Shorted after rejection with a stop at $0.96 cents, Sold into the fade
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