My first week as King: 64.3% stock gains

So if I calculated everything right, I managed to generate returns of 64.3%.
That means I have achieved my goal as King in just 1 week.

ROFL, the title sort of looks like one of those penny stock ads, no?

I don’t think that I took any extraordinary risks.
The greatest loser was -2.3% and the greatest winner was 20%.

Not to brag, but the week was actually only 4 days. The SPX ended flat or to be exact, up 0.31%.
I think its pretty safe to say that I killed it.

Below I put together charts of every trade this week.
They are nothing special. They show what I was looking at and maybe some people will find them useful.

As you might be able to tell, breakout trades from consolidation are my bread and butter. It doesn’t matter to me if its 52 week or 52 minute highs.

In a way, this was a perfect week to display my winship.
The beginning of the week favoured buying breakouts and the late week sell off gave me a chance to show how I sell.

Both my buy and sell points are always clear because they are set where the pattern is confirmed or voided. They are not just random numbers.

Even though some of the stocks I sold came back, the money I save taking losses early is better than getting destroyed, hoping to get out at break even.

Note I am not a “degenerate breakout day trader” like some bloggers out there that scalp a few pennies.

There is a few stocks that I held the whole week and I would of held longer if I felt like it.

I used macro analysis on the indexes, bonds, currencies and commodities to determine if I should be long, short or in cash.

Then I used my scans, multiple time frame and sector analysis to find me the best stocks to watch.

Buy: TVIX 16.34
Sell: TVIX 16.99
3.9%

Buy: NYNY 1.00
Sell: NYNY 1.13
13%

Buy: HOGS 11.15
Sell: HOGS 11.12
-0.3%

Buy: LLNW 4.80
Sell: LLNW 5.00
4.1%

Buy: VDSI 12.65
Sell: VDSI 12.61
-0.3%

Buy: SPTN 19.98
Sell: SPTN 21.08
5.5%

Buy: RUTH 6.16
Sell: RUTH 6.58
6.8%

Buy: QUIK 3.48
Sell: QUIK 4.00
14.9%

Buy: CAMP 3.84
Sell: CAMP 3.79
-1.3%

Buy: WTI 27.42
Sell: WTI 26.78
-2.3%

Buy: BPAX 2.94
Sell: BPAX 3.54
20%

Total stock gains: 64.3%

Longs:

Buy: LLEN 5.23
Buy: UCO 43.60
Buy: GPL 3.64

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If the past few days consolidation zone holds, then there is nothing to get worried about.

So far we are just working off overbought conditions.

There will be plenty of time to buy the dip next week as I have no interest in opening new positions on a Friday.

The idea was to take some losses in weak stocks today so they don’t turn into more should the sell off continue.

My longs like BPAX, LLEN and GPL are surprisingly, even to me doing well today. If they were stretched and looking tired I would of sold them too.

They are not, so instead I will let them run.

I thought about closing BPAX so I could finish my first week as King with huge gains, but I want more so I can “buy new rims for my car”

Sold:

VDSI 12.61
WTI 26.78
CAMP 3.79

Longs:

LLEN 5.23
BPAX 2.94
UCO 43.60
GPL 3.64

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Sold:

SPTN 21.08
RUTH 6.58
LLNW 5.00

Bought:

CAMP 3.84
LLEN 5.23

Longs:

CAMP 3.84
LLEN 5.23

BPAX 2.94
VDSI 12.65
UCO 43.60
GPL 3.64

The bear extermination continues.

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Market Open

Alright, I have a few lists, each consist of about 30 stocks that I flip through as the day goes on.

I have the Dow 30 components, the major indexes including the VIX, a group I call the Leaders (which is influential stocks), oil & gas stocks, precious metal stocks, micro cap stocks and things like this.

This is all pretty simple stuff to gauge market sentiment, turning points or to find leaders and laggards of a group.

I also glance over a 1 min chart of the SPX with the TICK, currencies and commodities.

Most important to me is my watch list. I usually have a set of longs, and when conditions permit, a set of shorts.

Basically I am just checking on existing positions, making sure everything is as it should be.

All the hard work of finding stocks to buy and when to buy them is done the night before.

Even though there is not much to it, I couldn’t imagine having to place trades and not be aware of whats going on around me.

Market Closed

Every night when the markets close, I get to work and I import all of the days data in to a program called AmiBroker.

After that, I scan a custom universe of stocks with a few basic scans that I have created. These scans are just reliable setups I have seen over the years that I have managed to put into code.

On rare occasions, if I see a “darling” stock that I like not in the list, I might venture out to grab it.

Also when it comes to commodities, those are basically a free for all.
If I see an edge, I will look to capitalize. (buying ETF’s or “market favourite” stocks)

Other than that, all of my trades are found by my scans.

Maybe it doesn’t sound like much, but I think this is one of the most important things that I have changed since becoming profitable.

(I was wiped out in my early days, a story for another post maybe)

Sometimes the stock market can feel like chaos. Being able to find a bunch of similar stocks, day in and day out provides a bit of stability.

Eventually looking at thousands of the same type of setups, you should be able to catch the subtle clues that are indicative of winners and even losers.

I haven’t become fully “auto” yet and so I still need to choose the best stocks by hand.

It takes me less than 30 min to scan a universe of about 2000 stocks, which I narrow down to 20 – 30 stocks.

From there I slow down and take my time. I narrow the list even more to 10 – 15 stocks, by critiquing each stock on multiple time frames and sector performance.

Which is what I will talk about next including, when to buy, short or be in cash.

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On a hot summer day, this tape is boring and not inspiring.

I have nothing to say other than, I booked some profits.

Tonight I will try to post what I am expecting for the rest of the week.

Sold:

TVIX 16.99
NYNY 1.13
HOGS 11.12
QUIK 4.00

Bought:

UCO 43.60 (hat tip Scott)
GPL 3.64 (hat tip Jake)

Note: I was going to dedicate the first 10% to muktukchuck, however, the first 28% (to be exact) came in the first day.

That will have to do instead. Who will I dedicate to next?

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LONGS:

TVIX 16.34

NYNY 1.00
BPAX 2.94
HOGS 11.15
LLNW 4.80
VDSI 12.65
SPTN 19.98
RUTH 6.16
QUIK 3.48

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