Chapter 2 Trading journal #112–06/19/2019 +$47
Green, but feeling like shit. Turned a decent winner and great into MGI mediocre trade.
Lessons
#1 Bids are ok for buying dips. or going long when momentum is there. But if there is a slow grinder and more position trade bids or offers do not mean a short. I mentioned it before, but today was very representative and painful.
#2 Day 1 Plays or Super Active Day are A setups. ALL other shit is B. and if this is a B setup — my entry can be ONLY from the top of the range, not even the middle. It is too easy to get fucked or shaken out when the entry is subpar.
#3. TAPE works when Momentum is there or when the chart confirms. Once again, how many times do I need to repeat it?
What to work on.
- Entries, I can not afford to be late on the trade or be early. It is extremely important to know what I trade> is it A or B stock for me? This will be my homework tomorrow. Write down what I trade. A or B.
- Concentrate on always being aware of what the setup is here and whether it is momentum or range.
- Add the checklist from Yesterday
- Start with reviewing the chart in Sterling
Work on Patience > waiting for real setup
Work on knowing why and what stock I trade. Otherwise, it seems like over-trading or just taking subpar setups (mid-day) with no bigger context (no big overextension on breaking news), just trading shit and losing money
SESN +$66
Early entry — the move I saw was just a signal of weakness. Not the setup. Wait
MGI +$61
#1 WTF was here? Rewatch tape.
#2 Ok entry, for momentum trade. It could have continued lower.
#3 Got long before. This was an early entry to get short. Momentum was gone, and bids were holding ascending trend.
#4 The same shot, early entry — at this point, the stock was still setting up, and lower highs were holding.
#5 WHY THE FUCK go long here. It was a slow grind down. It was a rare case where I indeed had conviction, and I SHOULD HAVE HELD
#6 THE SAME MISTAKE. BIDS itself, exactly the same way as OFFERS do not mean a shift if there is chart action that conforms or at least momentum.
#7 Was ok to give it a try for Momentum continuation.
NBY -$7
JWIN -$9
RVOL = 2.38 Was in play. This wedge was the pattern I was trading for the past 2 days. Above 33.30 was a technical breakout on a daily. So I was thinking maybe a 1 point is on the table.
Thinking, for now, I will not add at all to the longs. Dips should be the only entry. Although there was hard to have any size since I was buying in anticipation.
Also when it made low high, at this breakout level. I should have been all out or just got short. I saw the same pattern in $ARQL yesterday. Breaks out, but there is nothing going on. No volume comes in (here it was a key I Think), and nothing going on.
VSTM -$9
ARQL -$13
Shitty Risk/reward in both entries. It was B setup since it’s day N play.
VBIV -$16
This was a B play for me. So the entries I was allowed to have were missed.
And again the first entry was too early. No Major drop or over/under happened.
MLNT -$24
#1 Was going long but was shaken out every time the bid was taken out. Although on the chart, it was holding extremely clean. Should have picked it up earlier
#2 Complete mistake. Why even try going long when stock keeps making HH and HL? Should eliminate this kind of trading
#3 No Setup only offers
#4 No Setups only offers
Read next: Chapter 2 Trading journal #113–06/20/2019 +$130
Read main Chapter 2 “Peter, you have to start putting green days on”
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