Market has been generous these first few days of “AuGHOST”. There were a couple of liquid momentum stocks to play with.
I try to avoid fancy set-ups and just stick with the “easy-to-understand lay-up plays”. Since it accomplishes the same tasks too and gets the job done. But hey, who doesn’t love a dunker, right? I do those too occasionally…and FAIL! xD
When the market is down, be on the look out for outliers like these (see charts below). I like hunting outliers due to their liquidity and volatility.
I came, I saw, I sold…some
AOTS + Stocks making new highs
Reflection on ATN:
I still remember the loss and whipsaw that $ATN did last July 13. That’s one of the cons of executing intraday since it’s prone to bull traps and whipsaws. But hey, if the stock is really strong it will give you plenty of opportunities to enter. You just need to be PATIENT in waiting and KEEN to see it forming. That 5% cutloss is almost 30% gain, all thanks to risk management and position sizing.
Pwede na hindi magtrade the rest of AuGHOST. Now comes the hard part, not squandering the win. Thanks Ms. Market
Despite the good week I had at the start of the month, I did not hit my July quota. There were a couple of insignificant wins here and there and the compounded small losses did not help.
Most of the time I was just observing the market and not getting enticed on certain plays. I was just in cash until $MWIDE caught my interest. I’m just playing to my strengths and don’t want to force trades just because. It helped me survive in the past and I’m sure it will help me flourish in the future should I choose to do the same.
As of now, I’m keeping myself busy doing presentations and reading “GRIT” by Angela Duckworth.
Also, thanks to my generous student Mr. V! Nabigyan tayo ng isa pang malufet na libro at nakapila na sa library natin para basahin, namnamin, at ng makapag reflect!
IM EXCITED FOR THE PLAYS & EVENTS NEXT MONTH, AUGHOST!!!
Knowing when to cut your losses is necessary and a requirement to your trading success so accept and embrace it. I sell all my positions when the trade idea is invalidated to avoid further damage to my portfolios.
Losses are business costs and are part of the game so you shouldn’t feel ashamed to accept temporal failure. Not accepting that you can be wrong on your trades, now that, is cancer…know that if you dont remove that kind of mindset then it will spread and eventually kill your portfolio. While cutting a loss seals a negative return, it also embeds a lesson in you. It provides a means to move on and look for other opportunities that could give you handsome returns.
Remember: It is best to get rid of something of value if it is of negative value to you.
The first two days of the week were a bit volatile, the rest were dry and only illiquid plays popping up which doesn’t entice me at all. I don’t see my set ups coming up, some did but I failed to execute as it reached their trigger levels. No worries, there is no shame in missing out. 🙂
This is the season where you would have plenty of study time so when the market transitions, you can maximize and apply what you have been training all these weeks and months and hopefully reap the benefits of all that training. 🙂
The tribe were so bored that we decided to play skribble.
Close enough? :p
Happy weekend traders!
When putting on trades, it’s best if you understand the set-up and you like the structure as it forms in the chart. In my case, I mimic the chart/candle structure samples that I was given when I was a student and now that I’m given the opportunity to teach, I also advise the same to my mentees…“Look for perfect set-ups—mga tipong kikiligin kayo kasi you’ve seen the sample in the lessons and backtests thousands of times”—coz’ when I see that forming, it’s like the market whispers: “Press BUY”. Do you also have the same experience or I’m just weird? :3
I did less trades these past few days and experienced a couple of whipsaws on momentum & bounce trades. I’m being overly cautious and making sure that I don’t overtrade and only sticking with liquid and volatile names which have good risk-reward and accept if I’d miss some moves (IS, IRC, ORE, etc–can’t catch em’ all :p).
June 2nd-4th week trades:
There are 6 more months to maximize earnings this year and I’m in no rush. Slow and steady wins the race!
PS: It’s my first time to be caught in a stock suspension but i’m prepared wherever the price will go, I hope you are too because I’ve heard the suspension will be lifted on Monday, July 2. xD
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!