WPCS/1500: $105/PROFIT

 

I will start by saying, this trade, analysis and preparation was all done from my cell phone.  This is an experiment to see if I can trade successfully via the T.O.S. app on my down time at work (which lately, has been a lot of down time).  With that being said, risk comes from what you do not know.  My strategy via computer has been successful the last two months of 2017, and I think I can implement something similar via cell phone.  All experience is good experience, so I will only trade the trades that are in my favor.  I will upload the trade tomorrow morning.

 

I saw this as a dip buy opportunity from the get go, I noticed a lot of these stocks that have high premarket activity have been making good dip buys/breakouts.  This stock closed at 1.50 last Friday, and then climbed to 1.68 premarket and dropped from premarket highs all the way down to 1.35.  I expected this stock to rise back up to around 1.60 after the premarket pullback before the market opened.  I was expecting this stock to have a slight gap up at the open, then pull back to around 1.40, then reverse for the breakout.  

 

Unfortunately I was wrong, after the premarket drop to 1.35 it was minutes till market open and this stock gapped down.  I bought in around the base at 1.38, my mental stop was 1.35, and I was expecting to sell around 1.70 - 1.90 (if volume was strong).  This stock did not have the required volume for the premarket surge I was after.  After the open this stock spiked up to 1.57, I was trying to place an order to sell at 1.54 and was unable to go through because TDAmeritrade was having confirmation delays this morning.  I managed to get an order through and executed 4 minutes later at 1.45 for small gains of $105.  Luckily this stock did not tank, it dropped, and then topped out around 1.50, then consolidated in the low 1.40’s and then tanked.  

 

Trading on a cell phone really limits your abilities, you need to be more aware of what can go wrong because you are essentially walking in the dark with a candle instead of a high powered flashlight.  I think the biggest challenge is using Level I.  I gotten pretty good at reading Level II on my computer, and as most know, you can only see the bid and ask on Level I.  In adjacent to the chart, if you watch Level I closely, you can see who is in control.  The issue with that is you cannot see stacks, hidden orders and time and sales so I was relying more on the chart but using Level I to see big blocks, resistance and support.

 

I will trade again via phone, as long as the stock meets my requirements.

 

If you want to take the island, burn the fucking ships.

 

CARPE DIEM

 

Raul

 

TOP DOWN LIST

DO NOT DELETE

 

-RISK/REWARD: 1/3

 

-Float: 1.2M

 

-Volume: Average 782K, Current 8.36M

 (2% OF VOLUME RULE!)

 

-Short squeeze momentum number (1-5, 5-10,10+) w/ catalyst: .64

 

-Over Head Resistance?: 1.60, 1.90

 

-HYPE?: None

 

-EARNINGS?: N/A

 

-THEME?: None

 

-PATTERN?: Former supernova (last October)

 

-GAP?: Gap down

 

-EMA STACK: 200, 39, 13 (13, about to pass 39)

 

-MACD Histogram and Signal Lines: Histogram bullish @ 0.08, signal line in an uptrend, fast line above signal line, and fast line about to go positive (if day is bullish)

 

-MOM: Fast line bullish @ .35, signal line negative but curving upward in a bullish state

 

-RSI: Was neutral, the spike/breakout last Friday caused the tip to just barely cross into over bought territory priming this stock for a possible further spike

 

-D.O.W.?: Friday to Monday (in this case Tuesday since Monday was MLK day)

 

-Candle closing strong? Very strong

 

THE MARKET IS ALWAYS CHANGING, AND SO SHOULD YOU.

 

 

PLAN THE TRADE, AND TRADE THE PLAN - TRADE TO TRADE WELL, NOT TO MAKE MONEY.