I’m back in $NUGT after taking profit during the day. With price action taking out the high of two trading days ago, I’ve to go with the momentum and see if there is a follow-thru tomorrow. We may be seeing a potential bottom for gold right now if the upside thrust continues on.
This is still a high risk trade. My stop is a GTC order below intra-day low.
My 2 cents.
Comments »Did anyone see the double-top formation on $DUST?
Seeing that $DUST price action was having a difficult time maintaining above the previous high of $119.63 from Apr 17th, I saw a low risk trade in $NUGT for a bounce.
Take a look at the daily $DUST chart below:
Chart is not looking healthy for the bull here. A severe double-top formation has formed with price action today taking out the low of the last two days.
Take a look at the daily $NUGT chart below:
Although I was stopped out for a nice gain on $NUGT from the morning entry (with a low risk stop below intra-day low), I’m looking for a re-entry point with a low risk stop. Today candlestick bar is forming a bullish engulfment bar which can become a bottom bullish reversal pattern if price action confirms with an upside movement tomorrow.
My 2 cents.
The trades I made in $NUGT were time-stamped in twitter
Comments »So far, I’ve discussed the use of focus to bring intensity to our thought-process so that we can outdo our natural mind in order to follow the proper trading process.
What is the proper trading process again?
While I’ve mentioned cutting loss being a major factor in the proper trading process; it is not the mean to an end. In fact, cutting loss is only a part of the overall scheme in surfing the market wave.
Guess what, even for surfing, you have to deal with “wipe-out” which, to me, is no different than “cutting losses” in trading. Below is an excerpt from a lesson in wipe-out.
Get ready to wipe out. Wipe outs are an unpleasant but unavoidable part of the surfing experience. With time, you’ll get better at avoiding wipe outs, but for now, follow these basic steps to stay as safe as possible when one happens:
- Stay calm. A wipe out can be dangerous, but if you keep your head there is usually nothing to fear. Think clearly and act decisively to minimize your risk.
Except for the dangerous part, the steps involve here are perfect for cutting losses.
Here is a rephrase:
Get ready to cut loss. Cutting losses are an unpleasant but unavoidable part of the trading experience. With time, you’ll get better at minimizing losses (by knowing when to enter a trade), but for now, follow these basic steps to stay as safe as possible when one happens:
- Stay calm.
A wipe out can be dangerous, but if you keep your head there is usually nothing to fear. Think clearly and act decisively to minimize your risk of taking a bigger losses.
“Act decisively” is a very important key point here.
Even a highly skilled surfer get wipe-out from time-to-time; on the same token, taking losses are what successful traders do to protect profit and their portfolio.
I must say that I’m not an expert surfer yet in the realm of trading. As you can see from my daily journals, I’ve fallen off the wave plenty of times; but that does not preclude me from catching some nice waves from time to time. I’m sure the dedicated surfers out there at the beach will agree with me when I say that I will accept any and all wipe-outs anytime any day just so I can have an opportunity to ride that big wave to the end when it comes. Of course, in my case, I’ll take any small losses anytime any day just so I can have an opportunity to ride that big runner to the end when it comes.
Surfing the wave is an art and so is trading. The great surfer, even though his/her technical skills are strong, has to know the when and where to surf to maximize his/her enjoyment of surfing the big waves. They will travel to the proper beach at proper time to follow the big waves.
This is the same in trading. We have to know where and when to trade to maximize our chance of finding the next big trends/runner. Which beach to surf is as important as which sector to speculate. A perfect example is the recent shift of money flow back to the solar sector which The Fly has keenly alerted us.
Are you catching my drift here?
If you are a dedicated surfer, your whole life is about looking for the next big wave to surf. Your whole life is about improving your surfing skills. You go to the beach whenever you can. Your mind is always thinking of surfing. And when you surf, nothing else matter.
Do you see the simple truth here?
When you make surfing your life interest, your thought process naturally is very focused on surfing; nothing else matter anymore. Even your natural mind will be standing by the corner when you surf the big waves. For the surfer knows that the only way to ride the big wave is to be one with it. Anything less and you will be wiped-out.
In trading, we call it trading “in the zone”.
There you have it.
To bypass our natural mind to trade in the zone, what’s the better way than to take trading to the next level by making it a part of your life-goal?
It all comes down to your dedication.
My 2 cents.
Comments »
Today was a fine day I must say…
Market opened higher, rest a little, then took off to the sunset…
$DUST gapped up and the trade was instantly profitable. The only thing left to do was to protect profit while letting the price run. Sometimes you could hit the sweet spot with your trailing stop and ride the trend all the way to the top; and other times, you could be stopped out for a nice profit and left some money on the table. Today was the latter for my $DUST trade. I didn’t buy back for the second wind on the price run which came close to the previous high of $119.63 from April because my mind was no longer focus on the stock after I was stopped out. Remember, once I’m out of a stock with a gain or loss, any re-entry will have to be considered as a brand new trade with its own risk profile. $DUST, being a 3x ETF, is a high risk trade and I learn not to dip my hand back in after a win. If I left money on the table, so be it.
$MNKD opened higher but quickly dropped back to negative territory, I placed a close stop after open to protect profit and was stopped out during the retracement. Today was one of those day where I was stopped out at the bottom and price took off without me. I know this type of event will happen from time to time and the only thing I can do is to buy back in at higher price so as not to miss the rally. I waited for a retracement and bought back some shares later. Unfortunately, by day end, price action took a tumble later in the day. Since the candlestick chart near the end of the day looked like a shooting star reversal pattern in development. I decided to jump the gun by putting a close stop to protect myself. I was stopped out for small losses from this re-entry.
$BBRY started down and my put option looked good. But price action took a new turn and headed up, I sold the option for tiny losses and bought a starter position to go long with a tight stop. I was stopped out later for small losses. After two failed attempts, I decided to leave $BBRY along and moved on.
$APRI looked strong which surprised me; so I decided to go along with the speculation and bought some to chase. By the end of the day, I am still in the money. Let’s see what next week will bring.
$CERS finally took out the left-hand cup & handle pattern and I bought more. Price stabilized around $5.50 all day so I decided to sit on my hand again to avoid my temptation to take profit. After seeing the news that another fund has bought 600K shares of $CERS, I’m beginning to contemplate about moving $CERS into the position trade category. I see price target of $8 being achievable from here.
I’m taking small heat from $DNN and $GLUU; but I’m willing to wait until next week to decide what I want to do with these the swing trades.
$TINY is beginning to get some attention today from the news that Google and NASA have bought the new quantum computer from D-Wave which $TINY has a stake in. D-Wave is not the only reason why I like $TINY, I also like the fact that it has a stake in BridgeLux which manufactures LED light with a low cost design. On top of that, $TINY also owns quite a few shares of $SZYM. I’ve decided not to chase $SZYM on my own and just be satisfied that I own $SZYM indirectly thru $TINY.
$AMRN has a small hiccup today due to lack of news on NCE (new chemical entity) status from FDA. Oh well, I need to be more patience.
Current holdings:
AMRN, LRAD, TINY, CERS, GLUU, DNN, APRI and 32% cash.
The trades I made in the journal were time-stamped in twitter
Comments »After taking my quick profit yesterday, I assumed $APRI fun was over for good with short-sellers taking over. But this morning action told me otherwise. After open, price action started to kick off to the upside. Not to miss this speculation play, I bought back some shares to join the thrill ride.
If momentum continues the way it is now, $APRI may be breaking out to the upside after taking out the Feb 11 high of $3.42. If, a big IF, there is a buy out in the card, this one can go a lot more…
Below is the daily chart:
Below is the weekly chart:
Notice that this week bar has already broken out of the two 79sma and 89xma lines. Notice also how the two ma lines are merged together this week.
My 2 cents.
Comments »Today was a fighting day.
Market opened down and then yoyo through out the day before finally collapsed into a mini-correction.
First thing first, $AAPL opened down and I was stopped out of my long position due to my hard stop from yesterday. Not to be discouraged, I watched for a bounce and when price action began to rally, I immediately bought back shares and rode the rally back up. I used a trailing stop and was stopped for gain. Since I didn’t buy at the bottom for the bounce, I was still short of recovering from the morning losses. So I waited to see if $AAPL would continue to rally from the mini-retracement that took my trailing stop out. Price action bounced off the retracement low and I bought $AAPL back for the continuing rally. By end of day, I took profit again to bring my day to breakeven on my $AAPL trade for the day. Giving that I lost quite a bit on the gapped down, I considered today a wining day for me since I was able to recoup my losses.
$APRI had a big rally yesterday due to the fact that $APRI had a 8K report announcing that they took off the “poison pill” in their company setup. Speculation on takeover drove the price up in the morning. Not to miss a good speculation jump, I bought a bunch in the morning and watched my position turned green quickly. And when it started to turn south, I placed a stop and was promptly stopped out to lock in profit. If I had sold at the market instead of wasting my time to place a stop loss, I probably would make more money. But then this is hindsight talking. Due to the speed of a fall, I was able to keep only 20% of my gain.
$MNKD opened up but was taken down by profit-taking. Not to miss the boat, I unloaded my shares as well using a trailing stop to protect profit. Later when price stabilized, I bought back a starter position only.
Since I had a hard stop on $NVAX below the trendline, my stop was hit and I was out in the morning.
I saw $CCJ continue to march higher; instead of chasing it, I decided to buy $DNN which was still working on the bouncing momentum. I added more later when price began to move up.
Seeing that I missed $DUST yesterday, today retracement gave me an opportunity to buy back some. The setup looked perfect with a close stop for a small risk trade. By end of day, I am still in the money. My stop is still in place because I’ve used a GTC order.
I bought $BID after reading The Fly’s thesis on it. Seeing that it had retraced quite a bit during the day, I bought a position for the bounce. Unfortunately, price continued to fall further down and I finally put a stop below the intra-day low after a bounce. No luck. My stop was taken out and price fell further down. Moving on.
$CERS continued to rally more and I remained long by sitting on my hand to prevent it from pushing the button to take profit.
Current holdings:
AMRN, LRAD, TINY, CERS, GLUU, DNN DUST MNKD and 31% cash.
The trades I made in the journal were time-stamped in twitter
Comments »With $CCJ recovering, it is time for $DNN to play catch up. We are getting close to the point when the uranium supply from the Russia will come to a slow drip due to expiration of the on going US-Russia HEU (highly-enriched uranium) agreement in 2013.
The chart below looks like it is ready for a bounce.
I bought a starter position in the morning and later added more to double-down on the bet.
My 2 cents.
Comments »$CERS is one my “chase” stock from Monday and I’m still riding the rally on this one. Price action is now near the previous high of $5.43. A breakout of this resistance from here without any consolidation will form a left-hand cup & handle breakout pattern. Yes, you’ve heard it right. I don’t know if there is such a thing as left-hand cup & handle pattern in the stock chart book; if not, then I’ve just invented one.
Take a look at the chart below:
Momentum is still strong with momentum indicators still point up and not yet at the over-bought level yet.
Fundamental speaking, $CERS is already selling their blood “cleaning” system outside U.S. It is currently working with US FDA to gain approval for sales here. As the sales start to grow outside US with the possibility of gaining US market in a year or two, the potential for $CERS will show in the price action sooner if not later.
Depending on price action in the near future, I’m still debating if I want to keep this one as a position trade.
My 2 cents.
Comments »I like $DUST for its power surge yesterday and I think the run isn’t over yet. I missed the chase yesterday and today retracement in the 3m chart gave me an opportunity for a bounce play with small risk.
I bought a starter position @ $103.xx and placed a stop below the recent pivot low. See line on chart.
My 2 cents.
Comments »
