But, today I got off to a horrible, horrible start. In fact, it was my worst trading day ever.
First, I reserved shares of HYGS to short. It was up nearly 100% in the past week, and it was near $2, an important psychological resistance point.
I was looking to short into a morning spike near $2, and look for a quick reversal.
It did exactly that, spiking to $1.98 before reversing. However, I was slow in my execution to the point where I ended up chasing the trade. I ended up entering at $1.87. Horrible, because it bounced off $1.85 and shot back up. I quickly got out at $1.96 for a $91 loss. Good thing I got out because HYGS ended up rocketing to $2.20.
Looking back on this one, it really wasn't up enough since it's breakout a few days ago. I was shorting a strong stock....a big no-no, regardless of the psychological resistance.
The other mistake was my execution. When shorting into morning spikes, you need to be quick. If it's near your target, you need to get in. Once it passes your target, it's too late, and it's better to wait for another opportunity. If I had done that, I would've at least had a small profit or broke even on the trade.
LESSON LEARNED: Don't short strong stocks early, even if it's near a psychological resistance point
LESSON LEARNED: When shorting into a morning spike, be quick in your entry when it's near your target. If you miss your target, don't enter.
Next came PRPL. It was breaking out to a new high, and I bought in. Again, I was slow on my entry, and I got in at 27 cents. It touched 28, only to start to fall back down. I got out at 25 cents for a $120 loss.
This was just a dumb trade. Yesterday was the breakout. Yes, it was a new breakout today when looking at the longer-term chart, but I should've looked at the RSI, which was over 80 indicating it was already significantly overbought. The plain fact was this was not an ideal setup at all, and I should've never gotten into it.
I was also frustrated because I AGAIN missed another opportunity today...again with HTOG.
I knew HTOG was forming a perfect G/STEPS pattern setup. I failed to enter yesterday. However, I had another chance today on the 1 cent break. I watched it early this morning, saw it spike over 1 cent, but did not enter because I figured it was a brief morning spike. I was right and it came back down below 1 cent. However, I came back later, and found it nicely consolidating at 1 cent. Part of me thought, "This might make a good play if it breaks 1 cent again", but having already been burned this morning on my bad plays, and having been burned before on these small pennies, I was too scared to enter....despite the perfect pattern setup. And the fact, was...it was low risk at that point, because it was consolidating nicely, and the 60-minute moving average was gradually increasing. The re-break above 1 cent would've been a perfect entry.
So, I missed out...AGAIN. HTOG went zooming past .015 cents. If I had bought 200,000 shares, I would've had a $1000 profit.
Ugggh. This is just killing me that I keep missing the good plays. Sooner or later I'm going to fix this problem.
Finally, in the last hour of trading came my absolutely worst trade of the day, and one of my worst trades ever.
I was in Fous's chat room. There's a guy there named Darkmatter who's really good at playing subpenny stocks. He mention a huge volume surge on UVSE.
They also had news they were drilling for oil. I looked at the chart, and noticed the price didn't move much. I couldn't understand why the price didn't move on such heavy relative volume. I asked DarkMatter and his explanation was the following:
"yngvai, naked short death spiral, when the MMs run out of shares....KABOOM, check out the power point in the link I posted @ 10:58"
I checked out the Powerpoint. It was too long and I couldn't forward to any slides without watching the whole thing.
So I made the biggest trading mistake I've EVER made. I blindly followed and jumped in UVSE, 100,000 shares at .017 cents.
This was a mistake in all sorts of ways. The price wasn't following the volume, regardless of Dark's explanation. Also, if I was going to get in, I should've waited for the close. Finally, I shouldn't have blindly followed someone without thoroughly understanding why I was getting in the trade.
A few minutes later, UVSE fell off a cliff.....0.016, .015. I finally got out at .0145 for a $350 loss after commissions.
I was SOOOOOO pissed at myself, for making the dumbest and stupidest trade ever since I started doing this. I should know better. I should know better to play off the charts and price action. I should know better than to blindly follow anyone, no matter how good they seem to be.
I should know better. But, frustrated having missed some great opportunities lately....I think I was just a bit over-eager to jump into the next opportunity.
Yesterday I said I wanted to reduce my # of trades. Today I had 3 when I really should've had 0.
This is not the way I wanted to start off the month. I've had 8 losers in a row now, and ALL of them were bad trades in some way. The two worst ones are on small pennies. There's a reason why some people avoid those things.
What's frustrating is that I keep making NEW mistakes. I'm usually pretty good at not making the same mistake twice. But I'm damn good at making new ones! For example, I had never shorted into a morning spike before, so my attempt this morning with HYGS was my first time trying it.
But I'm most pissed at myself for the UVSE trade. $350 gone in minutes.
NEVER, NEVER, EVER, EVER, BLINDLY FOLLOW SOMEONE INTO A TRADE!!!!!! EVER!!!!!!
I'm not happy to see my account fall below $4800 now. It's at its lowest point. But tomorrow is a new day....hopefully with no more new mistakes and missed opportunities!
I need to refocus. I need to focus on high percentage opportunities based on the chart and price action.
GUTTER ACCOUNT STATS
Yesterday: $4856.64
Today: $4295.86
% return since yesterday: -11.55%
POSITIONS TRADED FOR A LOSS:
HYGS: $-90.94 (horrible entry)
PRPL: $-119.90 (bad trade all around)
UVSE: $-350 (one of my worst trades ever)
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