Tuesday morning, green on the day, i havent traded in a long time because of fear, even though i am confident in my knowledge. So i said that tuesday around 6:45 just pick something and go with it. Few things were moving, saw $CBDS uptrending nicely, i said if it broke 2.75 ish convincingly i would buy. It was a very nice multi-month cup and handle breakout, and multi year double top b/o and broke a multi-day high earlier so ii thought it had strength. Bought in at 3.83 risking roughly 6 cents a share looking to sell in the 4.15-20 range. As soon as i got in i realized, this thing barely has any volume, was around 100K, but low float. I still thought maybe it will gain, it just brokeout nicely. Those illiquid OTC stocks are subject to manipulation, and it cracked 10 cents in 1 candle, and another 10 in the next. Tried to cut out as fast as i could. was out at 3.66. I had never gotten into a stock and not have been prepared by knowing important details like float, volume, rel. volume, mkt cap. But i was so blinded by the nice looking chart i just bought in. That was my mistake, and probably make sure next time i dont buy OTC stocks with 100K only in shares which i usually aim for 1 mil. Through my analysis i have viewed that recently multi-frame b/o's have been working but i was a little blind to the fundamentals, and also i would have normally waited for a pullback. I just straight up behaved weird today, should have woken up earlier. Lessons Learned. Ready for the next for one.
Total Loss: -$50
October 4th, 2016
$CBDS
Yeah but it was the second green day so i didnt think it was over extended, and yeah i spreadsheet what technical plays are working and breakouts have been week late august, through mid september and i noticed they have been coming back, plus we have seen some recent supernova's
So for some reason only half of my comment showed up. The back half of my comment was that from my experience when these OTC stocks go parabolic on low vol into resistance they usually will pull back and in this instance hold supports over the previous breakout level.
i do think an 80 cent move on what was really a full day on a $3 stock would be over extended for such a short time frame. I actually dip bought in 3.40's after it held above the 3.30 which was a multi month breakout. I actually think because the pot sector is heating back up and it is a low float it could retest 3.80's or higher. Just got a little ahead of itself this morning. Again all just imo though :)
i see your perspective, thanks for your input!
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