The charts are pretty "ugly" this week, guess you can learn what not to do and how much you can lose from "add, add, adding" if you super stubborn and aren't careful. Terrible trading by me this week, I've gotten lucky quite a few times last month from "add, add, adding" but VLTC and PSTR were really big runners this week and they just kept going and going, I need to be much more careful with size and much more disciplined with my entries and exits. I think one of the key things that was different about VLTC and PSTR was that they were breaking out to new highs on the daily chart after a big run and then 2 days of consolidation that made their moves much more powerful.
VLTC and PSTR today are more great examples of using VWAP as an indicator for the overall price trend. I need to be using VWAP more as a guide for all my trades, being much more LONG BIASED ABOVE VWAP and much more SHORT BIASED BELOW VWAP. I really think utilizing the VWAP indicator to it's full potential could have a big impact in my trading in the future.
ABOVE VWAP - be much more careful on shorts and ALWAYS cover when it's basing at a certain levels and refusing to breakdown, look to be going long on dips/bases anticipating more spiking, can also use VWAP over/under as your risk on a long
BELOW VWAP - be much more careful dip buying washouts and going long, and be looking to short all pops, while still covering into washouts and respecting higher lows and grinding action, VWAP retests and rejects offer amazing shorting opportunities, using VWAP over/under as your risk for the slow fade back down
FOR NEW READERS ONLY: If I am scaling in and out of a position, that is considered one trade until I am completely out of the position and then it becomes a new trade, that's why some trades have a lot of shares, even if I never had that much at once, if I cover half and then re-add my cover, it's still considered one trade until I am completely out. The entry is the average of the entries and the exit is the average of all the exits. The entries/exits are rounded to 2 decimal places, but the exact number is calculated for the PnL, so that's why the dollar amount may look different than what you see. (it may be 7.165 instead of 7.17, etc). Also, you can click on the charts if you want to make them bigger to be able to better see the entries/exits.
PSTR
Nate absolutely nailed this long $1.20-1.80 a share, just like VLTC yesterday, I should have been paying more attention to chat and seeing that he was long, I didn't realize until it was over 6, I was too focused on my charts. I wanted to short a morning parabolic on this, but didn't expect this much of a spike and without pulling back much at all. It had a big move from 4.45 to 5.20's in 5 minutes, but I was still somewhat careless with my first entry because it was only 500 shares, and I wanted to make sure I got in if that was the top I guess. I had 500 shares at 5.27, and then "trying to make that 500 shares work", I kept adding more 500 shares at a time, 2000 way too early from 5.38-5.58 and then 1500 5.65-5.77, I ended up with 4000 shares 5.54 average and it hit 5.47 quickly on one candle but I didn't have any orders in there, and then it was holding 5.55 area where I should have covered ALL or at least some from 5.55-5.65 for a small loss. It spiked up again to 5.90 and I added another 500 at 5.89, it hit 5.66 for a second on that candle but I couldn't get anything filled. I added another 500 at 5.97, now 5000 shares 5.62 average and it pulled to 5.70, I thought it would fade more after that pull so I added another 500 at 5.84 on the bounce, now 5500 shares 5.64 average. It did a quick pull to 5.62 but then rebounded right back to 5.80 on the next candle, I missed covering anything, my orders were waiting 5.36-5.57. It pulled back a little bit again but was still holding 5.70's and still above VWAP, and I should have been covering some 5.70-5.80 and just taking a $500ish dollar loss because it could easily spike up again. It spiked to 6.25 in one candle, and I think I added 500 at 5.94 on the way up, then added another 500 at 6.04, I should have been panic covering around here but instead I was adding more. I had 6500 shares 5.70 average and it hit 6.60 for a second (5.8k unrealized loss at the very top), it dipped to 6.10 and I covered 1k at 6.16 and then I got bought in on 2500 shares at 6.22ish, which now made me down $1650 on the day and more unrealized still. I didn't want that buyin to result in a bigger loss than would it could have been so I reshorted 1600 again at 6.23ish, new average 5.87, 4600 shares, it pulled to 6 and I missed covering a single share and it bounced back to 6.30 in 2 candles, then popped to 6.44 but made a lower high then came back down to 5.98, there was lots of support and big buyers around 6 and I should have been COVERING ALL when it was still holding, and then looking for re-entries again later. It rebounded to 6.40s and had one "stuff candle" at 6.56, I am so thankful for that "stuff candle", I thought it was going to pop over HOD and I would be screwed again. It pulled back to 6.02 and continued to hold around that area and I still didn't cover any, it popped back to 6.20's again, then it finally broke 6 and pulled to 5.87 in one candle. I originally had an order in at 5.92 but then I changed it to 5.82 and missed covering any, it started to "peak out" and it was rejecting VWAP on the bounce, I tried to cover some 5.82 and 5.85 but got 100 and 200 share fills, it cracked 5.80 and I covered everything 5.64-5.77 for about a $650 dollar gain on that part with -$1770 realized on it already. Now I should looking to short all pops for continued fading, but I missed reshorting on the bounce again 5.80ish and it faded to 5.50's, but the IDEAL re-entry for a re-short was a 6 dollar (VWAP area) retest, I was waiting patiently for that, but then I took a break to eat for around 10-15 minutes from 13:20 to 13:45, and came back and it was 5.85 by 5.90 and I just missed the perfect entry at 6, I wanted to scale in 2-3k shares around 5.95-6 and try to be patient with a winner on that. I scalped it long from 5.81 to 5.88, I only got a 200 share fill and didn't "flip short", then it was just low volume choppiness 5.70-5.85 with a 10 cent spread so it was hard to trade, it faded to 5.60's and I chased a short at 5.61 and covered at 5.56 since my entry was a chase. Then shorted 1000 shares at 5.58 and covered that at 5.41 for a quick 17 cent scalp. I had orders lower for a scalp long but it bounced from 5.36 to 5.50, I scaled in a bit too big (somewhat on accident I wasn't expecting to get filled when it was 5.50 by 5.42 and I thought I just missed hitting the 5.50 bidder), I had 4400 shares 5.58 average and I covered it all 5.45-5.53 for a tiny profit just because it's so thin and could easily "skip back up on air" to 5.60's as it did. I was busy with INUV and missed reshorting 5.60-5.70 and it faded nicely to 5.10's by close.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
|
| Long | 5.81 | 5.88 | 200 | $0.07 | $14.00 | 1.20% |
- Lessons:
- Always be careful shorting morning parabolic's, especially after a few days consolidation on a big mover and be extra cautious if it breaks out to new highs on the daily chart, they can go much further than you think (I thought 4.45 to 5.27 was a big move and I still started in way too early, just imagine those that were shorting 4.50-5)
- ALWAYS COVER ALL when it starts to base and it's above VWAP and still "early", 5.55 and 5.70 were key levels that were still holding and then it spiked way higher (I should be treating it the same as if my average was 5.70-5.80 I would have been covering 5.55-5.60 if that was my average but since my average was bad at 5.54 I was more stubborn and then it spiked further)
- Be careful of add, add, adding too much too soon, 5 was a key breakout level on the daily chart and I should have been waiting for even more extension past that instead of just adding 500 at a time carelessly on the way up
- Sometimes it's best to wait until after the first 10-15 minutes before shorting some of these big parabolic's, sometimes they just keep going and going like this one did
- Always cover ALL when it's basing at key levels and still holding above VWAP (it held 6 and popped back to 6.45, it held 6 again and popped back to 6.40-6.50, it hit 6 again and popped back to 6.20's, IDEALLY, COVER ALL when it's holding then replace those shares again higher into pops)
- Convincing VWAP and 6 dollar break was a great spot to be shorting on the bounce when it was failing to bounce back above VWAP
- VWAP can be used as a guide for reshorts later in the day, if it rebounds to it, it is often rejected by it and that's often the highest price it'll ever hit and it will slowly fade from there
VLTC
Still no shares on this to short, I was completely prepared to go long on an opening minute washout. I wanted 6.16 to start in and I would have added more on the way down to 6, but it held 6.25 at the open and then spiked to 6.71, came all the way back to 6.27 on the next candle and then spiked back up to 7.09 in a few candles. It dipped from 6.95 to 6.63 in one candle and I got 1000 shares long at 6.67 and sold immediately at 6.79 and it hit 6.95 on that same candle. I was too busy with PSTR and missed any other trades on it, then it was below VWAP and just slowly fading later on which was much harder to go long on so I didn't trade it, nice rebound in the last hour but then I was busy with my "fat finger" mistake on INUV.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Long | 6.67 | 6.79 | 1000 | $0.12 | $120.00 | 1.80% |
- Lessons:
- Sometimes on these big movers, I should take a small long position when it's holding a solid bid and not breaking down in the first minute or two, I completely missed this spike today and NVGN yesterday because I wanted a washout to go long, but they dropped 5 cents or so and then held support and went straight up
INUV
Fairly overextended daily chart from 1.93 to 3.50 this week, the right idea would have been a short once it failed at 3.50 and then was slowly fading off. I went long at 3.36 on the washout but it's so slow moving I should have never even taken that trade, what was I expecting to get? 3-5 cents? I sold for 3 cents on the bounce. It started fading from 3.40 to 3.20 and then it hit 3.01 in one candle and rebounded to 3.13, I missed that and then it was retesting 3.01 again and for some reason I decided to go long there, but I should have been waiting for lower if I wanted to scalp it long since it was the SECOND TEST of that level. I would have been fine if I only had 1000 shares, add another 1000 2.80's and sell for a tiny profit on the bounce. Problem is, I accidentally put 10000 shares and I actually had enough BP for that order to go through (I think I had around 31k BP and that order took 30k, super frustrating that it was that close to saying "not enough BP" and not going through). I'm not sure if it was just slowly filling or if it was delayed or what, but I recognized my mistake immediately and I had about 1000 shares filled so far and I was trying to cancel it like 5 times but it was just slowly filling for the next few seconds, the numbers were still slowly filling when it was already hitting 2.85-2.95 (I think it was just delayed since everything still filled at 3.01 and I couldn't cancel it). It actually filled me 9800 shares instead of 10000, not exactly sure why, it hit 2.85 and then rebounded back to 2.90's. I was too greedy on the exits, I had orders in 2.98-3.06 to sell it all but I only got 1k at 2.98 1k at 2.99 1k at 3 and 300 out of my 1k order at 3.01, so I was still long 6500 shares. I could have sold the rest 2.90-3 for less than a $500 dollar loss, but I was too stubborn and I was still down $500 on the day and this stupid mistake was going to make me down $1000+ again. It washed out to 2.60 and I was down $2500 unrealized instead of less than $500 which it could have been, it bounced to 2.70's and I sold everything 2.75-2.86 for a $1400 dollar loss from the whole thing, really stupid to lose that much on an "fat finger" error.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Long | 3.36 | 3.39 | 1000 | $0.03 | $30.00 | 0.89% |
| Long | 3.01 | 2.86 | 9800 | -$0.15 | -$1,429.00 | -4.84% |
- Lessons:
- Be careful/avoid trying to catch a falling knife on an overextended daily chart that's going green to red on the day (my idea and entry wasn't the best anyways but I would have been okay if I didn't do 10k shares)
- Always make sure the right price and number of shares is in the order box
- If you do an accidental error, don't try to make it work and turn it into a good trade, I could have taken a $100-500 dollar loss which is still a lot because of the size, but that's what I should have done, rather than trying to turn it into a profit by having most of my orders 3.02-3.06 and missing them and not hitting the bid 2.90-3
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