Me and my students were eyeing on this stock since it broke down supports and emotional drops were present. We were waiting for signs of strength for potential spikes or short term bounces. I initially took positions when I interpreted presence of strength in price action 1 & 2. Both did not materialize my bullish bias so I dropped my positions.
It’s very important to note that even if the play did not materialize as expected, still keep the stock on your watchlist as long as the set-up was not ruined by a selldown or price action breakdown. Plot your trigger levels for re-entry so long as the risk reward is worth it. Luckily, there was really no other stock that compares to the potential reward that $PXP had. $ECP didn’t even make it to my watchlist because some parameters was not met.
Realizations on this trade are:
- Even if the set-up is perfect there’s a chance that the market won’t move as you expect it to.
- Take small losses, small gains, free trades.
- Prepare your buybacks as long as the set-up is still present.
- Don’t be afraid of buy backs, the worst that could happen is you follow your cutloss plan.
Did I feel frustrated that I wasn’t able to get at the lows? No, It’s about ease of execution, you need to position your mind where you’ll feel comfortable executing trades its not about who got the lowest and sold at the highest.
Well executed plays to my students too @Kasei @Winter
It may not be the perfect trades you were looking for but you did follow your own plans and executed them accordingly! All the best for our next trades!!
Last week’s volatility came from ceilings, then switched to bounces this week. Its a natural lifecycle of price movement, if you missed the rally, then wait for the bounce. To traders who are capable of recognizing, executing, and are well conditioned to trade these plays, I bet they bagged at least one of these babies this week. I missed some bounces like $ISM, $PXP, & $SOC but was able to capitalize on 2 ($PHA & $GREEN):
Some of my students were able to execute bounces too especially Raven AKA “Bounce Queen”. xD Congrats!
Me and Kasei may have been whipped in $GREEN but all is well. Trade Objective met.
The past couple of weeks we experienced a dry spell in the market, the number of premium set-ups were zero to none. I made and lost a couple of thousands in this duration:
Then came the 4th week of March, stocks which I never even heard before came popping in my watchlist. Luckily, they passed my trading checklist to pique my interest:
and my students were able to spot & ride these momentum stocks, as well:
Then on Wednesday, we were reminded by the harsh reality that “Anything can happen”.
This is $LSC, it ran up to +50% during the trading day but in just 15mins during the afternoon session it broke down from a high of 1.45php to 1.00php, that’s almost a 30% drop. This enforces the importance of risk management. You could build a few small gains but the moment you let your guard down and disregard your stop loss, be prepared to let the market take back those gains that you worked to build days, weeks, or even months. I was almost caught up in the disaster, I had a couple of shares in my Timson account that gained around +10% but had to sell at cost to avoid further damage:
I almost got caught in the middle of the disaster in my col account and was just waiting for a few more items in my checklist to get crossed out.
Instances like what happened to $LSC teaches us more lessons than our trading wins do because it leaves scars to traders who were grossly damaged by its sudden selldown. The market is teaching us something during these tough episodes so we can put better countermeasures (position sizing, timing, better reaction to our risk management, etc) when it happens again…because it will. Nevertheless, however down the market is, this week was an evidence that outliers still do appear and that plays never run out. 🙂
That’s it for this month’s narrative. Over and out!
Few greens and a couple of reds,
Got whipsawed on $HOUSE, lost money on $GREEN
Left out by $GEO, Free trade on $ZHI,
Flirted back with my $X, Fast trade on $MB.
This is why I’m a trader, I suck at poetry. I tried. :p
Hyper volatile stocks are abound this love month, and as momentum traders, this is our favorite arena. Some of my students missed the run of $PHA few weeks back but they were prepared this time. $MACAY, $MB, & $T came along and almost all of them were able to execute. Some in their real ports, some on their virtual ports. They were steadfast, just observing the charts, & the price action. Armed with the knowledge that they have, the belief system that they adopted, they patiently waited for the right set-up, the right opportunity and the most important of all, they were able to “Execute & Take Action“.
These students focused on performance over propaganda. The result? Independent Trading. That should be one of your goals as a mentee, yung kahit mag isa ka nlng sa bundok, kaya mo pa rin mag trade without other people’s advice. Detachment from hypers, bashers, and haters.
Congratulations on your trades! Time to reflect and share your psychology on these momentum trades in our bunker. Proud of you squad!
There is an infinite number of set-up/plays in the market yet, upon introspection, why aren’t we capable of processing everything or even coming close? The best we can do is have these little filters.
The way we should set filters is by what we pay attention to and spend the most energy on. Different traders have different filters depending on their trading style, some perhaps is a support or a resistance, or varieties of indicators. For a pure technician, everything is in the charts, for the untrained eye, their filter is set to “ignore” and then you tune it by introduction, memory, then repetition until it widens a little bit to fill in extra “stuff”. Ultimately, it will be set as to what matters to you the most. If that’s Fundamentals, Technicals, News, or Disclosures it is unique to every trader. These filters focus your mind and your memory on a very specific thing. This is important in teaching since you need to bring your students to get sensitive to these “triggers/signals” because those are prompts for them to ACT. As students of the market, once we have these filtering concepts intact, that’s the time where we eliminate what is useless to us and only FOCUS on the few that makes a BIG impact in our trading.
Choose your filters wisely.
Many of us have been drowned out by other trader’s beliefs that it is IMPERATIVE to MAXIMIZE the entire run from bottom to top. I’m just not wired that way and that is ok because I get the results that I desire. Yung 200% run up ng isang stock eh maka 50%-100% ka na eh gain ka pa din, it’s mental poison when a trader has bagged profits and yet punishes himself for not selling at the top or holding long. OPTIMIZE is where you refine your system and beliefs according to your trading style to get your expected output. This is why I respect the differences between me vs investors, trend followers, day traders, scalpers even if I don’t agree with their process. They have their own beliefs and system. You do you.
Ang trading, hindi pababaan ng AEP or pataasan ng gain. It doesn’t matter whether masakyan mo ung rally ng 1 trade, ng 3 trades, or 5 trades. What is essential is following your trading core beliefs and executing as per your trading system. Hindi mo pwedeng pilitin ang scalper type na mag hold ng matagal, same thing na gawing tsupitero ang trend follower or investor, you can teach them to expand their skillset or to maintain mastery of their niche. There is no “better option”. As long as ang end-result mo is profit after a measured period (i.e. 1 quarter, 6mos, 12 mos, etc).
One thing I’ve realized in my entire trading career is to challenge beliefs, cultures, and yourself. Upgrade your mentality by taking in empowering beliefs then taking out the rest…consistently, like upgrading the hardware of your computer. Don’t slave away by just following other people, make sure it helps make life or trading better, not the other way around.
To all specialists, may the odds be in your favor!