Today I bought 200 shares of FNJN. It's an earnings winner with a float of 7.69M at 52-wk highs.
I missed the first dip at the open above 2.50 so when it went red to green on the break of 2.60 I got in 2.64. As soon as I got in it slammed down to the 2.30s. Normally I would panic and sell on that first red candle but now I wait for the bounce and if there's no bounce I sell on the 2nd red candle. So when it bounced back to the 2.55 but then failed and broke 2.50 support I sold. My mistake and I was thinking about it pre-mkt was that it was way off its highs yesterday after-hours and it was downtrending pre-mkt. So I'm going to make sure I avoid these kinds of patterns from now on.
I've stopped posting charts to focus more on studying and trying to refine the process as it takes a lot of time. Going to post more in-depth analysis of my trades so I get used to understanding why the stock moved the way it did.
Some of the rules I've put in place below will help reduce my losses going forward and will change when I'm more consistent. These are specific to me.
1. Don't buy stocks under the 200 ema on the intraday chart. If you are it has to be very close to the line and it has to be a low-floater.
2. Don't buy the first candle at the open (due to fakeouts). Buy the break on the 2nd candle or the 1st dip.
3. I have a habit of selling too soon. Like on winners I'll only hold for 2-mins, especially after a loss. So forcing myself to hold longer by switching to the 3-min chart from the 1-min as soon as I'm in a trade and hold for at least 1-dip unless it's spiked a lot before a dip.
4. Always watch volumes, emas and longer times frames. Important!!
5. Don't buy high priced stocks above $15.00
6. Only buy in the first 1-1.5 hours of the open, not pre-mkt, not midday, afternoon or after-hours
7. Don't buy gappers way off its highs especially if it's downtrending pre-mkt - today's mistake
8. Buy 1st/2nd/3rd breakout or dip only.
9. Never dip buy stocks on the backside.
10. Always check the recent ranges. These I've found to be pretty spot on, as you'll know how far a stock can go.
Posted May 12, 17 11:31 AMbyPandabear
Tickers
FNJN
@profitmichael thanks!
I loved your videos, they are 10x better than anything else I've seen on profit.ly I can tell you are thinking out loud as you go, you are learning a lot! I myself do a lot of chart analysis so it's cool to see someone else thinking so analytically.
As far as selling goes, I've found it to be much tougher to know when to get out vs. getting in (long or short) I would suggest trying to sell on a breakdown, and from there refine your process to be able to sell quicker at higher prices. Also consider not using every high or low, it can filter out a lot of randomness. Good luck trading!
@terps88 Thanks. I might do another video soon reviewing my trades over the last two weeks. I've also made it a rule to hold through at least 1 dip on the 1-min or switch to the 3-min once I'm in a trade and just wait for the first breakdown. Looking at longer time frames definitely filters out the randomness. The patterns are cleaner and easier to see. Good luck to you too!
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