I just gave back half my profits from last month in two days, really devastating hit to the confidence, I feel like I have no clue what I'm doing anymore. It's really hard to come back from draw downs like this, but that's what separates those that make it and those that don't, traders need to have perseverance and be resilient in times of struggles and keep pressing on. New day tomorrow, gotta get myself figured out and build myself back again.
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.
BIND
Gapped up today, I shorted 800 shares at 6.57, going to scale into it, I almost added another 800 at 6.60-6.64 but didn't, then ended up covering it at 6.47 for 10 cents.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 6.57 | 6.47 | 800 | $0.10 | $80.00 | 1.52% |
WBAI
This opened up around 12 and quickly hit 11 after being halted premarket yesterday when there was bad news released and it was trading between 10.65-12 premarket from 12.29 close the day before. My first trade on it made sense, shorting into the parabolic from 11 to 14, should have covered some into the pullback candles and then reshorted, and ended up covering around 50 cents early, but it was still profit. It held VWAP perfectly and starting bouncing back up, I shorted way too early at 13.78, I should have waited to see how it reacted at HOD since it was so close to that. I added a bit more at 13.95 and 14.17, I had 1000 shares 13.93 avg and it was 14.30's. I was trying to put an order in for 600 shares at 13.87 but accidently put 14.87 since I forgot to change the "14" that was still in, and I took the ask at 14.27 for a $200 dollar loss, it washed out to 13.70ish and I covered the other 400 at 13.79 (that accidental order cost me around $300 total). Then it was just slowly grinding up again and I thought it might fail at 14, so I shorted 500 at 13.99, then it still looked weak on 14 over/under and I added at 14.13, it popped to 14.30's and I didn't cover any there and then it spiked past HOD to 14.80's in two candles. Tried to cover into the dip and only got 200 filled then canceled it, I readded 150 shares at 14.93 (all I could add) and then got bought in stupidly at 14.89 on 260 shares, it pulled to 14.30's and I covered at 14.36 for a much smaller loss than it was at the top. It grinded all the way back up again and then popped just over HOD on a parabolic and I shorted at 15.16 and it pulled back to 15.02 but then spiked another 50 cents, dipped again and didn't take it, it spiked further, dipped again and missed it (there were sellers at 15.61 a few times but they got taken out and then it started the next leg up to 16.50 (another $600 difference). It pulled to 16.16 and I almost covered there, then bam 16.80 next candle (another $400 difference), it came back down some and I covered 16.32 and 16.09 with one 150 share readd. Lastly I shorted 16.30, 400 shares and covered at 15.75 for finally a decent trade but with half the size as all my losses.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 13.84 | 13.58 | 700 | $0.26 | $181.00 | 1.87% |
| Short | 13.93 | 14.08 | 1000 | -$0.15 | -$152.00 | -1.09% |
| Short | 14.18 | 14.55 | 1050 | -$0.37 | -$391.30 | -2.63% |
| Short | 15.38 | 16.18 | 850 | -$0.80 | -$677.00 | -5.18% |
| Short | 16.30 | 15.75 | 400 | $0.55 | $220.00 | 3.37% |
- Be very careful of spiking and uptrending stocks AFTER BAD NEWS (or what some had perceived as bad news) especially with SSR on, tons of people are trapped short from 10.70-12 either from premarket before the halt or from slamming into the first candle that went from 11.99 to 11 or shorting on the bounce back up and add, add, adding (this acted similar to what it did on March 2nd but even more powerful today)
- Never should slow grinding up action on uptrending stocks, ALWAYS WAIT FOR PARABOLICS or BACKSIDE
- NEVER SHORT so close to HOD on uptrending stocks (whether it's just before or just after), especially after it has already come down and consolidated and grinded back up
- DO NOT FIGHT THE TREND, get better at going long on dips on uptrending stocks or just AVOID SHORTING THEM
PSTR
So frustrating seeing this before the "crowd" did when it had traded less than 300k shares was just slowly uptrending in the low 3's, that ended up being the problem and I was way too early. I shorted 1000 shares at 3.96, added 1000 shares at 4.09, it hung around 4 for 3 minutes and I was trying to cover some as the best bid 3.90's when it wasn't breaking down as much as I thought. Then straight up to 4.87 in 2 candles (down like $1600 unrealized in 2 minutes). I had no room to add unfortunately, which would have been the place to be shorting (WAITING FOR A PARABOLIC IS THE ONLY WAY TO SHORT THIN UPTRENDING STOCKS), had I waited for that move I could have scaled in 2000 shares 4.70-4.85 and covered 4.30-4.60 for an awesome quick trade. It came down to 4.30 and I covered 1000 shares at 4.35 and missed my other cover in the 4.20's. I readded 1400 on the pop 4.66ish, now I had 2400 shares 4.40 average and it dipped to 4.38-4.45 three times and I missed covering any for breakeven. Then next leg up again to 4.80-4.90, I tried to add 300 shares at 4.92 and got 100 filled, luckily it tanked from 4.80 to 4.10 and I covered everything 4.18-4.26 for a small gain on the whole trade even after the earlier $300 dollar loss. I wanted to scale in 2000 shares long around 3.96-4.04 but it never got to any of my orders unfortunately. I then reshorted on the pop, 1000 at 4.27, 600 at 4.34 and added another 450 to a winner at 4.27 and it pulled to 4.08 again and I got 1250/2050 filled into that washout (800 still left). I tried covering the last 800 on the bid 4.14-4.18 and wasn't getting filled when I wanted, I was trying to readd on the ask but only got 100 filled and 200 filled and then I canceled those thankfully, I shouldn't have been readding there and should have just been focusing on covering my last 800. I kept missing the covers and then it popped back to 4.48 in 2 candles and I added 4.35, 4.40 and 4.45. Now I had 3600 shares 4.36 average it was hanging around 3.36-3.45 and I was trying to cover some on the bid but didn't get filled and wasn't aggressive enough, I could have easily covered it all at 4.40 but I was too greedy and didn't want to take another loss because trying to "make back" still since I was still down $400 on the day. It popped to 4.70 and then dipped to 4.48 and I was trying to cover 4.48-4.49 on the bid when it was hardly breaking down after it broke 4.50, I missed that and off she went back to 4.80's ($1000+ dollar difference than if I covered at 4.50). Now it was getting past 3:30 EST so I was afraid of getting bought in on the ask when the spread is 5-10 cents, so I started covering on the bid 4.67-4.76 and had one 600 share readd at 4.83 that I was pretty sure of. I still had 1500 shares going into the last 10 minutes and I covered it 4.67 and 4.61 right before it tanked to 4.45 and then hits 4.35 at the close, really frustrating but I still thought I might get bought in so that's what I had to do. Went from -$400 on the day and +$100 unrealized to -$1500 by not covering the 800 shares from that good trade and then readding "trying to make it work" and not taking the loss into dips and being stubborn with it, getting squeezed into the last 15-20 minutes and then it washed out right back to where it came from before the market closed and will now probably gap down (just like VLTC did yesterday). Once again, these types of stocks ($3-6 dollar momentum stocks), you either make a lot or lose a lot, I need to be trading these much better, so much missed opportunity when you are on the wrong side of these and being stubborn.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 4.31 | 4.26 | 3500 | $0.04 | $150.00 | 1.00% |
| Short | 4.34 | 4.54 | 4850 | -$0.20 | -$969.30 | -4.61% |
- Lessons:
- ALWAYS WAIT FOR A PARABOLIC ON THIN, UPTRENDING STOCKS, DON'T JUST SHORT IT RANDOMLY JUST BECAUSE IT'S UP A LOT
- Always cover ALL when a thin, uptrending stock continues to hold a key level and doesn't break down (it kept holding 4.40 and I didn't get any covered from 4.40 average, had my average been 4.50-4.60 I probably would have covered but I need to be covering regardless of what my average is, if it keeps holding it will likely squeeze higher again, my avg was so low because my had 1000 shares from 4.03, my 1400 shares from 4.66 had made around $400 but because I didn't take it, I ended up being down unrealized on my adds and missed the real opportunity shorting 4.80s to 4.10s with a completely new trade)
- MAKE SURE TO COVER ALL if it starts to hold a key area or make higher lows, DO NOT TRY TO MAKE IT WORK WITH READDS just cover the rest and then can look for re-entries later (4.08ish held as a double bottom and I still had 800 shares and I missed covering that and then READDED "trying to make it work" and ended up turning my $400 dollar gain into at $970 dollar loss)
- VWAP break to the downside and then hold over/under and then RECLAIM is very bullish, and the stock will likely continue higher, do not be fighting it short
Losses suck, but it's part of the game, I was having the same problems with VLTC yesterday. You have a nice blog here btw, you give some great insights, keep your head up bro. If you get a chance, check out my blog www.infotraded.com I have a similar trading style
ReplyDeleteYep, it is part of the game, but my last two days way been way too much, just gave back half of last month's profits in two days. I need to focus on consistency also, I did well last month but I still had 8 red days and 14 green days, being green almost everyday is ideal, it's but better than the emotional rollercoaster, up down, up down, all the time. Just slow and steady green everyday, small gains really add up. I saw your blog about a week ago, looks great also, I see that you are a lot better at consistency, 3 weeks of all green days is great, awesome job. Thanks for your positive comments on the blog. Yup, chin up and move on, everyday is a new day, start fresh.
Delete