It was up premarket, so I decided to add to my position. I put in an order before the market, and it executed right after the open...got my fill for 25,000 shares at 2.3 cents.
It quickly jumped up to 2.5 cents. I was once again up around $1500. However, it failed to break that, and slowly came tumbling down over the day today....2.3 cents, 2.2 cents, 2.1 cents. I continued to hold. Now it was at 2 cents. As soon as it broke 2 cents, I got out, selling at 1.95 cents for a $182.50 profit.
Needless to say, I'm feeling a bit depressed today. Yeah, it was a profit, but I should've had a lot more.
I made some mistakes on this play. First, I should've taken a partial profit yesterday when it hit 2.5 cents resistance. I should've held the rest into today. As soon as it failed to break 2.5 cents for the third time, I should've sold the rest. Usually, if something fails to break resistance 3 times, it's not going to do it again.
I also shouldn't have got caught up in this mornings PR. I should've only added to my position if it succeeded in breaking 2.5 cents resistance. This cost me $117.50 in profit if I had just held to my original position.
If I had done these things, I would've had a $950 profit on the trade. That number is based on a 100,000 share 2.3 cent exit yesterday, and another 100,000 share 2.3 cent exit today, including commissions and assuming I didn't add to my position.
LESSON LEARNED: Always take partial or complete profits at resistance points, no matter how high you think a stock might go or how much hype is surrounding it
LESSON LEARNED: Only add to a position on key breakout points
Despite these mistakes, there are some positives to take out of this trade.
Positives:
- I had a great entry into the trade.
- The trade was good to get into based on the combo of the chart pattern, hot sector, and message board hype
- I broke my streak of losing trades
- I've only had one round-trip trade the past few days (one of my goals this month is to reduce my trades)
Things to improve:
- Need to improve my exit points and when to take profits. I should always be taking at least some profit at resistance points.
- Remember that if a key resistance fails to break 3 times, it's probably not going to do it a 4th time
UVSE will still be on my radar. Apparently the dilution is done now, which makes it look promising for next week. Still, the chart at this point doesn't look appealing with the big red candle. I'll be looking for signs of reversal on this one.
GUTTER ACCOUNT STATS:
June 30th: $4856.64
Yesterday: $4725.79
Today: $4518.24
Today's overall loss: -$207.55, or -4.39%
Loss since June 30th: -$338.40, or -6.97%
Positions traded for a gain:
UVSE $182.50 (great entry but bad exit)
Have a great holiday weekend.
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9 comments:
love the site Yng. Love the honesty and evaluation, you are a good addition to the greenonthescreen chatroom too... very thoughtful.
Like you I was up $1500+ on both days. Let both slipped...Still holding for mon
Thanks for the positive comments, johnny! I appreciate them.
Hey, anonymous, I'm ticked I got shook out of UVSE. There is SO much message board hype on it, and now that the O/S is maxed out, this thing is probably going to run. I'm probably not going to get the nice .0175 entry that I got before. I'll be lucky to get back in below .02.
yeah those pennies play by different rules... to be honest I haven't been willing to play them until now, however I am running some scans and tracking them to see how it goes. What are your thoughts on FRTL?
Hmmm, not sure about FRTL. Volume looks pretty low for a low penny stock like that. 1.2-2 million shares isn't much for a 1-2 cent stock.
These little pennies are so, so risky because they can move 100% or more in either direction each day. I'm willing to play them, but only if there's an absolutely perfect setup...gotten burned too many times otherwise.
ok so you're looking for absolute volume. This came up on a screen for breakouts w/ a criterion of 500% increase of relative average volume. I agree w/ 13th on this matter pennies can be a fun game but not a place to put capital that you would be upset to lose. He plays each one for $500 so like 1% of his capital. I agree the gains are tempting- some of them don't just double they go up 10X! But I'm in greenonthescreen trying to learn how to be a good consistent trader of the high dayrangers, so for now I'll just watch you guys and cheer you on.
Yeah, you can't put too much capital in these because when you need to get rid of your shares, it can be difficult if you've bought too many.
Now, with UVSE, I'm not afraid to put in $4000 on it because the trading volume is so high (60-100 million or more), that if I got 200,000 shares I wouldn't have much difficulty in selling them when I needed to.
Something like FRTL, you wouldn't want to put much capital in it because you would have a tough time selling your shares if you had too many of them.
yeah those are headaches I just don't want to have. Maybe I'll jump on the next breakout play like FRGY but for now mostly the 1-15 buckers.
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