$ISM: The stock was still in a tradeable phase in it’s life cycle. Fractal analysis similar to what $NOW formed few weeks back. Nearest trade idea, Range Trade.
$2GO: This was never included in my watchlist since I seldom trade transtitions but it did a hyper momentum move and a very familiar trade set-up popped up. Bought some at near closing then added shares at open since RRR is high, AEP doesn’t matter, what you want is to maximize the effect to your port and not anything else.
We may not know specific news about what’s what in the TELCO world but when we look at charts it sure is GLARING which plays to focus on. With that volatility and liquidity back again, we put our momentum hats and wait for signals!
Market was abundant with Momentum and Bounce plays this month! Much like Q4 2017’s Telco rallies. Thankfully, we were prepared and was able to catch some of the movers.
Some Project Seed students were also able to ride the monster stock of the week ($ECP)! Some did paper trades, some on their real account. Great job and keep em’ coming!
Be on the lookout because this volatility might not be over.
Congratulations to all and lets celebrate wins this Saturday! ZFT Christmas Parteeyyy!! 🙂
$ISM, the hottest stock in the past 2 weeks, most of my attention was toward this stock, making plans, thinking of scenarios that may potentially happen, then executing them once the market hits my triggers. I traded the stock 5x as it was going up, here’s an overview:
I shared my trade walkthrough with my mentees in ZFT batch Immortals, Zenith & Olympus yesterday since it may help on their studies in momentum execution and to also stress one of my trading style beliefs:
Overall, it was a great week for traders who were prepared to execute this kind of move, whether it be Trend Following, Momentum, or Scalping.
Market is conducive for day trading this week. I remember Nov-Dec 2017 where there were plenty of plays like this in PSE.
May this volatility continue until December. Congratulations to all who bagged their monthly/yearly quota this week!
Some say being a”weak-hand” or selling too early is a weakness, I think it’s a limiting belief. As long as you do it in a clinical and methodical manner, accept it’s pros and cons, and condition your mind properly then you can turn that “Weakness” into your “Strength“. If you do it consistently, it just might become your niche.
Day traded $GREEN due to its rare volatility since it just came off of a 3-year suspension. The stock gapped up over 500% at market open!!
This kind of condition siphons the liquidity off from other stocks on the same day so there are 3 risk options that you may choose to take:
- Look for viable plays intraday since volatility is present (High Risk)
- Take action with your weekend watchlist.(Mid-Risk)
- Do Nothing. (No Risk)
I picked (1). Why? I am available to monitor the stock, I have a methodology to employ in these high risk scenarios, I am disciplined & patient enough to wait for opportunities.
1 Stock, 3 Trades, in 1 Day
Round 1: Being able to recognize an opportunity to win, then taking action.
Round 2: Being able to recognize an opportunity to lose, then taking action.
Round 3: Getting over a minimal loss, then look for another opportunity, then taking action.
It is a MUST for a trader to be able to recognize viable opportunities in the market but more importantly, to TAKE ACTION once it materializes whether its a winning or losing trade.
It is not often that I do counter-trend trading nor do I recommend this to traders who are just starting out, this is not part of my niche. However, I use my understanding of SUPPORT & RESISTANCE techniques to buy the bounce and sell the fade.
If you notice in the chart above, after a stock has made a strong move over an extended period of time in one direction (in X’s case – downtrend) , a rebound is likely to take place. The stronger and longer the move in the direction of the trend is, the STRONGER the REBOUND is likely to be.
I aim to look for trades that have 1:3 Risk-Reward-Ratios. My objective is to profit from the rally and not ride the entire move. The latter causes a lot of traders to “REGRET” their decision in execution, I just have a different perspective, as long as I can see my conditions in a set-up being met, I’m good. I don’t care about maximizing gains from point A to point B, I’m about staying objective and not day dreaming of potential big gains from doing ONE TRADE. That has been one of my belief systems in momentum trading that kept me sane and profitable since I went full-time.
Reflection: During market downturns, look for stocks that are emotional and that which panic is present. Usually these are the stocks that can give you opportunities.
I had MRC and sold it at +3% as it slid back down yesterday during trading hours.