Chapter 1 Trading journal #5 - 01/10/2019 +$37
Lessons Learned:
- Stay longer with high conviction trades — unless stopped out.
- SSR on or off affects how easily the stock can be manipulated.
- Identify patterns in play on different timeframes
- Know which setups to get out for breakeven and where a stop should be above the latest resistance, meaning for my mean day reversion setup I need to get breakout as soon as it’s invalidated.
- Know that highs are taken out or not taken for reasons. Think why?
$DCIX this was my high-conviction trade right out of the gate. With these types of trades, I should either get stopped out or hold till there are Reasons 2 Sell. Missed the easy 10 cents move.
Also for the highest conviction trade — I should have probably shorted right out of the gate — that’s actually something to think about.
$ASXM Shorted after rejection, traded around the core, and got out really early.
The stock was really weak at the open, I should have stayed with it and added a size back on the rejection wick and gotten out if somehow it would have started to hold support.
- My second trade entry was legit but the rule for this type of trade is — price never gets back — if it is — it is a different setup — get out, reevaluate, and re-short.
- Re-shorted again — on VWAP got out,
Later in the day, I was impatient with my entries there was a massive pattern in play — with running stops and etc. From a liquidity standpoint, it was a way bigger provider of it than my idea — So I should have kept in mind the priority of the patterns.
$WATT Completely happy with the trades here — was patient and waited for my entries.
- I spotted that they didn’t run the stops — basically saved 1 penny.
- As soon as I saw it, I was convinced they are saving liquidity to get fills on top
- Then it was failed follow through and then they saved it.
- SSR on (maybe that is what changed the pattern/setup I was looking for) and gave a chance to unload more stocks with the higher average on people.
$VHC I got stopped out on the first entry, 2 other entries worked out quite well.
Again that was day 2 SSR. And I guess that's what’s contributed to whatever happened.
From what I see, if you want to unload stock, it makes a lot of sense to run it till SSR, then push higher, run higher the next day, and then maybe slowly sell off.
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