Good week, looks like the market is trying to give us more momentum based plays.
Some more losses:
$VUL: Bought at around 1.02 @ Sold at 0.98 then yesterday it went up as high as 1.18 Whipsaw!
$SBS: -5% loss on this one, I wasn’t able to cut fast enough.
The month of May was dry in terms of my niche plays, most set-ups fail horribly when it’s momentum trigger level is reached. This is good for traders who are in the sidelines and just waiting for their perfect set-up to appear and liquid enough so they could get in. There will always be at least one stock every month that will show momentum and trading public’s interest will spark once they see the opportunity…this month were the “TELCO” stocks again. Signs of volatility suddenly appeared on these candidates and momentum traders were like sharks that smelled blood in the water.
Trades for the week:
I’ve also cut a position on MRC last Tuesday but no snap.
May we continue to hit our targets this year.
Goodluck to all!
The set-up behind $NOW was discussed during class just 2 days ago. Luckily, a play appeared the day after.Dissection and discussion will be done later in class as their seatwork for replication and proper setting of expectations on the trade. 🙂
EOD -> Sold Intraday
Buyback intraday -> Sold intraday
See you in class later!
Looked for actual trades to discuss in class. This was not my forte set up but the $X trade below shows a good story that if you understand and use combinations of ZFT tools properly, you may earn even in this kind of market.
$MRC Trade will also be fun to dissect as it shows why you should expect that resistances resist.
These actual trades will be discussed in detail (the why, the how, and my psychology behind it.) with Batch Zenith next week but sharing these in my blog in case you’d like to do detective work.
Goodluck on your trades everyone. 🙂
When I make a trading plan, I make sure that I can react whenever price hits specific key levels on my 3 C’s (Continuation, Confirmation, and Correction). Having so will enable me to act with less emotion on the trade since my mind is already prepared wherever the price may go and all I have to do is follow my desired reaction for each “C”.
However, there is always the unknown variable, which I call ‘Deviation’. My reaction whenever the market deviates from my plans would be based on my experience with that ‘event’ as it unravels.
On this recent $VITA Trade, it appears ‘Correction’ had happened, therefore, I executed my final tranch sell once it hit my last bearish key level.
Hope you learned something new! 🙂
I had small gains and losses trading $VITA this week and finally today, I got whipped. I thought the reward wasn’t worth the risk (I’d like to have at least 1:2) hence, I did not execute another trade for this stock. This is as normal as a storm visiting our country, it is going to happen every now and then. I can’t stress the importance of taking small losses since it will save you from major drawdowns and opportunity costs. I guess I need to wait for the next best set-up to trade for this one.
One of 4 trades on VITA
I was trailing this stock that kept on free falling until I saw it was closing in on my buy point. I put my initial tranche and scattered bids across the board. Only 3 bids were hit the rest were too low to get served. I wasn’t able to buy my next tranche at a higher price since I wasn’t keen enough to react when it reached the level and there were liquidity issues. It might be a +20%++ gain (I sold 11.20 and below) but it was just a low volume trade. I did not chase to buy when it was rallying since it wasn’t in my plan to do so.
I’m still thankful that the week didn’t end negative but performance could have been better if I was more alert. 🙂
Time to reset this weekend!
@Mesino Thanks for lending me this werpaful book, weekend reading! xD
I had a few cuts last week on bounce set-ups that didn’t materialize but luckily this stock showed strength and momentum despite the slow market condition which erased last week’s losses and gave back some more.
Average Sell Price
I just found out this new feature in Timson that I can hide some columns at will. It helps me from seeing my P/L on the trade however this is just an illusion as I know the fact that I need to face the reality on seeing bigger losses to enhance my pain tolerance as the portfolio grows.
Anyway, Thanks $VITA!