Weekly review example: Week #15

Another weekly review example: Weekly review example: Week #16

Goals I had coming into Week 15:

• watch 2–3 stacks and trade 2–3 stocks
• no frontside short — at all. Especially when there is no today’s resistance — it is just not worth it at all. Even try.
• 1 min 20 MA — do not add. DO NOT ADD or ENTER if there is a retest.

Trading overview of the main trades :

Winners

$TRNX

Didn’t Identify the range properly here. There was a series of higher highs and higher lows as a tell that the previous trend had been broken already. When this happens, there should be no more momentum added. All the entries should be from top-of-the-range or MATA setup.

Also, what I noticed this week with these sub $ stocks — the whole numbers 60 or 85 never hold. Always over/under.

$RWLK

1- long MATA — ok

2- Short MATA, but the range is still there + no momentum — break even

3 — Covered bottom of the range -good

4 — This mistake cost me money last week several times. the trendline is ascending, and bids are holding, but I’m trying to scale in against top of the range

5 — MATA short

$PRPO

I got the move, I got capitulation candles -2 of 1,5M each — right now, I have to let range form before getting in ( even If I still have a 1/4 form the initial entry — I Need to let range form. Otherwise, I’m getting chopped after the momentum is gone, but a new range has yet to be defined.

$PRPO

A good example of how it should be done. Covered everything into capitulation candles. Let it come back, rinse and repeat, and again the same setup. Notice how this 45 level now is over under.

$NVCN

Getting chopped here. Almost all my entries are below 45% of the range. No momentum whatsoever. The range is not broken = there is no need or point of getting chopped. Just wait for a pop, and cover the bottom. Stop above 66, so take an entry risking of it.

The moment when the range contracted and broke to the downside was a signal to get more shorter on the retest. I should have hit the bid. I still had 3/4 of my size. But being more aggressive here would have been the right thing to do.

Losers

$ATAI

1st entry — early and then late — Ideally, it should have been in from the top of the range. The setup here — scalp to the mean.

2nd entry — the bigger picture has changed, there is no more over extension + I know the trendline is being held = Covering everything in the bottom of the range. I traded this range improperly.

$FCSC

#1 too much scaling in a) below 50% of the opening range, b) while the range bottom still holds. When the offer got canceled ( not even lifted — i believe only 1/3 of 36k was bought), it was clear there was no momentum> this is a range. And as usual, the stop should be above the top of the range and scale in accordingly to avoid chop fest.

#2 when it was finally holding below range bottom, it was time to add, and I piked.

$UXIN

The biggest loser of the week.

#1 I was scaling in against the top of the range, going short while it was long. The trendline was holding, Bids were huge.

#2 I Should have been more aggressive at this point. Up-trending momentum exhausted itself at this point. Top of the range could have been a good starter.

#3 I Got the move I was looking for. I got these panic candles. I got the ascending bids and yet did not allow the range to form and retest it before I got in. > Got chopped.

Main Flaws to work on coming into week 16:

1. Do not scale in against the top of the range when it seems it can be broken to the upside. At some point, I’m realizing, ok, a stock trades in a range. I want to be in from the top, and I’m waiting for a pop to get in. But apparently, this is not just a pop — there is a buyer who holds it right after this pop. And many times, he pushes it higher. I need to avoid this type of trade at all, or even if I got trapped — now I should be able to recognize it right away and get out right away.
   First of all, I need to start factoring in a bigger context the stock is uptrending or the main trend was never broken, or the bottom of the longer-term range was never violated. What is the big picture here?
   Secondly, What are the small details: Short-term trend ( higher highs + higher lows = ascending trendline, big bids, offers are getting wiped away Easy, range bottom support is in place and is never even tested or tested on big volume and rejected violently)
2. Here are a couple of examples of what I’m talking about:

or #4 here

1. After the move is done, the momentum is gone. I’m getting chopped while trying to get into the position for the next leg.

Solution here:

• When I got 2 capitulation candles — there was a very high likelihood that this leg would be done, and I needed to wait for a new setup to get in.
• A lot of times, there is a short-term ascending trendline that tells that this is not a time to get in.
• To take a starter, I need to see either a MATA setup short, of If MATA is still far away, it is ok to have a level to be against and get in after the retest — this will give some time for a range to form and I will be able to avoid a lot of chop.

Couple examples:

Week 16 Goals:

• Eliminate scaling in short when the range is breaking to the upside.
• Do not get chopped after the big panic moves. Panic candles are a big tell — there is a need to wait till new range forms. Ascending trend is a HUGE tell that the previous trend is broken. Wait for a retest and a level for re-entry.
• watch 2–3 stocks and trade 2–3 stocks. After a move, be back only after the range is formed
• keep working on identifying a range trade vs momentum
• Keep working on scaling in — it worked really well last week. It helped me a lot to keep my losses small, hold the position while it was going against me, and add at the beneficial price levels while keeping risk responsible.
• Keep working on scalping. This worked for me as well. Cover some at the support, reshort at the resistance. If a frontside — cover 70% -100% and stop for a breakeven. If the range is broken to the downside — Perfect! Wait till it retests support ( now resistance ) and re-add full size or if there is a bigger context now in play — add even more risk since this is a confirmed downside.

Check out my latest post:

Beginners guide to trading mistakes. Common day trading mistakes with 50+ charts and examples.

Read my story from the beginning.

Chapter 0. What it takes to be a seven-figure trader, and how it all started.

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Resources

1. Connect with me on Twitter, Linkedin, or hit me up on Telegram
2. Table of contents — everything posted up to date.
3. Subscribe below to get new post notifications.