So, its the first day after many of us witnessed the SPI supernova raging from about $1(pre-market) to $46 within 4 hours - leaving us all baffled/numb/shocked/speechless.....and hungry..for more!

This also lead to a few sympathy plays with SUNW and POLA - sector catalyst working in their favor. 

When analyzing the human behavior, its interesting to see how traders react to supernovas a day or two after it.

Hungry for more supernovas

Many of us woke up this morning, hoping for yet another supernova. This 'hope' created the demand for even more supernova movers today - SUNW & POLA raged even higher than Day1 and NETE too joined them along with CBAT and PECK.

SPI sliding down..

SPI saw two major pre-market spikes - the first from mid-$14 upto about $28 and the second one from $20 to $30 just before market open. It traded 1/10th its volume (29M) and ended red on the day (-20%), declining consistently about 1$/hour after the pre-market spike at $30 and not holding VWAP at any point in time.

Trader psychology at its best..

Greed is good, but how much is enough? Our emotions get the better of us and we begin to trade out of our plan, taking much bigger positions to get a piece of the 'pie'. This is the discipline that separates seasoned traders from newbies. The only rule-book is your mind - If your emotions start getting better of you when you are in a trade, its game over! 

I admire Tim Sykes who says 'I am a very conservative trader and take small profits as it compounds over time.' as well as 'plan the trade and trade the plan' and the best one of all 'No one trade will make you a millionaire, but one trade is enough to blow your account!'

There will always be another trade. So, fight the FOMO (fear of missing out)!

- MJ