My Failed trade on $DSKX:

 

• Today I bought $DSKX after its b/o over multi year high.  It initially b/o at $4.00 and had a day high of $4.46.  It turns out I was on the right track, but my timing was off, and it was perhaps too aggressive of me to think a stock that was already up so much could continue breaking out above it's all time high all in the first day of the b/o.
• My first mistake was that I was late on finding the breakout.  I bought at $4.39 right before the high of $4.46.  By this time, the stock had already broken $.30 above it's +2 year high, making an all-time high of $4.46. That is a significant move considering the stock is up $1 from April.  The stock eventually slid down to $4.10 and attempted to break above $4.40 again, but could never succeed.
• Later in the day around 1PM CT, it was reported that the CEO bought $3,500 shares in the stock at $3.71.  This also could have attributed to today's breakout. 
• DSKX has recently been racking on the celebrities to endorse/promote the stock, including celebrity stylist Jen Atkin and Belinda Peregrin, Mexican born singer/songwriter.  There was no news catalyst announced in the morning today.
• The lesson learned here is to not chase a breakout.  The initial all-time high at $4.07 gave a very real chance for upside of at least $0.30, which is what happened. But after the breakout occurred it would have been best to not trade this one
• Shorting a stock that just broke an all-time high is not safe because it could continue to climb (remember it is up from $1 to $4 in 2 months).  It has also shown it can hold gains over the past 30 days, which is not a good signal for shorting.
• This one is a possible buy in the future since the long-term chart it very positive, but next time my timing will have to be better.
• I have to catch the breakout as its happening so I can get a good entry price.
• Another point is I could have broke even on my position if I had waited till the stock tried to retest $4.40s.  But this is almost inconsequential; I should not have bought after the $0.30 upside.  
• If I would have not traded at all once I missed the move, then I wouldn't have had to wait and see if it would climb back up, which was a complete guess.  Judging midday moves on a stock with no daily news/catalyst is always risky.  It wasn't a perfect play by any means, or a play which I would consider holding longer than 2 weeks because this stock is up a lot and it will reach a top eventually, maybe soon.  And this maybe is why I was guessing more than I was knowing; the odds were against me.
• I need to stop taking little small trades like this one.  Of my 27 trades, most of them have been small losses because my entry prices were poorly chosen, usually because I missed the initial breakout/breakdown and was trying to chase the stock based on news that I received late in the game.  I need to learn the best, most reliable patterns that work and stick with them.  I need to remember the 2 week rule.  You have to take this rule with a grain of salt so you don't become too cautious (since the majority of our Pennystock trades aren't held more than a couple days).  But it is still a good mental attitude to have when trading, and it would have kept me out of this trade if I had really stuck to it today.

Failed No Trade on SGYP

 

• Not having a lot of money in my account made me weary of this one, but it would have been a great dip buy.  
• I should have dip bought into the morning panic based on the positive news from their successful phase 3 trials on constipation medication.  
• This news came out in the morning at 5am CT.  At this exact time, the stock started trading premarket and shot up $2.  It fell pre-market leading to open and then had a morning panic down $.80.  It then double bottomed at $6, which showed it could hold a key support price at $6 after rising from its previous close at $4.64 on 6/16/15.  This showed it could hold gains of $1.50, so why couldn't it continue to rise another $1.50 the next day?  Well, that's exactly what happened, as it closed at $1.60 on 6/17/15.
• Tim didn't trade this because the last two of his morning panic dip buys did not work out.  The difference with this one was that it had been up trending from the $3.20s over the past month.  The other dip buys had been either choppy and/or downtrending.
• You can't forget to consider longterm chart trends, no matter what kind of play or pattern you are looking for.
• The lesson learned is to recognize the all these characteristics to spot the next great morning panic dip buy; by the end of the day it rose another $1.60.
• I'll get the next one.

Extra Thoughts to Myself:

• I am very eager to learn to do this because of money.  It is always in the back of my mind.  
• At 23, I am still supported by my parents.  They put a lot of pressure on me to get another job while I'm getting my masters in jazz piano.  I love music, but I don't want it to always be the focus of my career.  I don't make a lot of money doing it now, so I began looking for another path that will allow me to make a decent income and still do music, where I can also have a flexible and mobile lifestyle.  I also want to be passionate about this new path.  Trading has become this new passion.
• Initially, trading was something that started as a way for me to gradually gain some extra money on the side while still being in school and finishing my masters.
• Now, trading has become something that I really really enjoy and that I want to become a big part of my career.  It intrigues me in so many ways and learning about it and doing it makes me incredibly happy.  It still amazes me that anyone can make a living this way, and to think of that being me is well...frickin' awesome.
• So the bottom line is I have to stop focusing on money, career, life, parents, all of that.  I have to focus on learning the craft and trying to get better every day, and always remembering where I want to end up in life and how trading is going to get me there.  
• As a matter of fact, time to go watch some more Tim fundamentals part deux.