One good opening trade this morning thanks to Mr. Marc Sperling. Heard him talking about this stock pre-market to his traders and saw thebull flag setup. Actually traded this one before a few months ago and decided to participate when the stock ripped above $1.50 resistance. Next level of resistance was $1.70. Decided to wager .07¢ for .20¢. Bought 300 shares at $1.52 stock with a stop at $1.45 dropped to $1.45 did not get stopped out watched stock pop to about $1.65 decided to just cash out at $1.62. I'm walking away with my $27.
Another important tool I used was the "tape" or Market Depth to see how the order flow was going. Thanks to Dom's stocktwits link I was able to apply what I learned last night.
The lesson I learned from yesterday is "hubris" not going back today unless there's some new development I can confirm. Going to follow gambling rules the longer you play the more the probability favors the house.
I made a really rookie mistake when I exited out of my COIN trade. My IB order "sell" presets default to setting a bracket and when my sell limit was executed the opposing sell stop order was still active. I walked away and was filled 300 shares at $1.42. When I got back the stock was moving away from me at $1.45. I immediately put a BUY at $1.40 and luckily the stock dropped down to touch $1.40 and I was filled... Lucky because I pocketed an extra .50¢ for a pretty silly mistake that could have cost me.
ReplyDeleteI disagree with your statement about the probability favoring the house. This isn't a structured game like Vegas offerings. As long as the reasons for entering a trade are sounds, who cares if you have 20 opportunities today and none tomorrow. I contend that if you're trying to make a certain amount per day, or trying to execute one trade per day, that you're either taking on too much or too little risk.
ReplyDeleteWanting to "smooth out" the market and take a steady paycheck is just a human psychological trait of wanting to control the situation. In my opinion you take what the market gives you, and be prepared for times when it's not giving you anything. Learning to sit back and patiently wait is all you need to do. And when it wants to give you this hand over fist, just take it and don't look at it as tempting the odds.
Should have added a downtrending market can be like a vortex that sucks the momentum out of everything in it's path. I probably shouldn't have used that analogy at all. Bottom line "hubris".
ReplyDeleteWhat's wrong with hubris? It worked for George Bush and Hank Paulson. Oh wait, never mind.
ReplyDelete