Month: February 2017

Learnings from a failed trade

Dammmmmmmnn!!

I lost some amounts again today for trading 2 stocks that I’ve had given a good amount of time last weekend in planning how to trade it.

It is PMPC and LMG this time around. Both are,I believe, following the DNA of ALCO. And so, I used the said stock as their fractal. I traced the movement of the base of ALCO using the Wycoff method. Determining their 1-7 legs before its monstrous parabolic run.

Lots for learning and realization from those failed trades today.

  1. I should have bought at the support of their trendlines. Duh,basic! But I’m stupid.

    Because of FOMO, I bought at higher prices,clinging to hope that it would rally much farther and it won’t go back to my average entry price. Both indeed rallied in the morning but came down right after. IPIT. Sold them at a loss. And I also forgot to make it a priority of watching the INTRADAY charts closely.

  2. Treat every stock I enter as a daytrade-only and watch them closely using INTRADAY chart. Never buy without opening the intraday chart.

    That if I bought them at close the prior day or on the open today, I would sell them if they brokedown from my EMAs using INTRADAY chart! If it doesn’t go down until closing,I’ll hold it the next day and use the high of today as trailstop. If it survived the rally on the first day then I’ll treat it as a good entry for my Trend-Following. But if it goes down instead, I’ll SELL ALL SHARES. No ifs and buts. SELL THEM ALL!!!

  3. Use GTC to buy the target stock at the price of the support/below of the DARVAS box.

    Don’t buy the current price. Don’t rush and please be verrrrryyy patient, meself. Accumulate at the support when the stock is silent. And never chase a flying stock. Should you chase a fast moving one, apply Ceiling Play and INTRADAY trading rules. SELL THEM ALL if it break the EMAs.

  4. BELIEVE IN YOUR GUT FEEL! 

    Should you feel that a no-activity stock at the opening is likely to rally,BUY IT RIGHT AWAY!! Don’t give time to think about it cause you already did so last night during your planning! Follow your plan! Don’t freeze out and overthink! Buy it! Buy it! You’ll sell it anyway if goes down, but if it rallies then consider yourself lucky for buying it first before anyone else.
    -PMPC experience during the open today (February 27,2017)

  5. Use INTRADAY charts to BUY using the breakout theory of the EMAs,RSI and DARVAS BOXES!
  6. Always plot DARVAS BOX after buying!
  7. Give attention to the  INTRADAY charts after buying for a possible breakdown.
     
  8. Use INTRADAY charts to SELL a stock that brokedown from EMAs and DARVAS only!
  9. INTRADAY charts!
  10. INTRADAY charts!
  11. INTRADAY charts! 

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NOW – Calm before the storm?

This post will serve as a documentation of the ascending triangle formation of NOW to see what kind of wrath the recent disclosure of the company will do to its chart tomorrow.

NOW closed at 2.91 with a gain of 4.68% after it posted a disclosure of their preferred shares issuance today. senti-9f752a80-9624-4ee7-9dbe-bd4fbb4e71b5

News about pref shares issuance make stocks flying high just like what happened to ALCO, PNX and DD recently. Perfectly enough,its been consolidating on a triangle and waiting for some good news for this stock to breakout from the psychological resistance 3. The projected target price of the ascending triangle is at around 3.94.

Also worth noting is the EMA13 and MA20 about to cross that would signal us to BUY this stock. MACD is also in the pipeline waiting to cross. RSI is rising too and is above the 50 line. Now that is quite bullish.

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During the closing, there was a huge unserved BID in Millions that might signal us what to expect tomorrow. I’m one of those queuing to get shares for tomorrow’s opening.

 

MWIDE breakout

MWIDE closed strong yesterday above the symmetrical triangle formation and Darvas Box.

-The RSI brokeout successfully from the box resistance too
-The breakout volume is also very convincing at above average.
-The EMAs are also perfectly aligned coming from a perfect crossover of the 3 from the previous candle.

Anything else? Oh hey! The MACD,if you like to add…
-The MACD is also showing its first bar above zero on its BUY signal from the previous day.

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X Divergence

X, after months on the downtrend,finally showed a bullish divergence. Its been on a buy-back program since last year. What I learned about buy-back program is that you have to watch the transactions with an eagle eye every now and then and look for the huge amount of cross or “pasaload” to appear. Cause by then,it’s very likely that the program has already come to an end and that would mean a possible reversal. Pic such as below is a good example. It is the actual screenshot of the transaction of X at the closing today. Look at that cross by Doyts,that’s what we are here for.

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But,could that really guarantee us the much-awaited reversal for X? I don’t know,I’m just a newbie! But if you look at the chart,there is something interesting happened,the bullish divergence where RSI started to point up which coincides perfectly just when the cross by Doyts happened. Today’s RSI must be the trough unless negated. Now that’s something to look forward to! It wouldn’t hurt to do a test buy near the support at 7.11 or near today’s closing price while not forgetting to set the stoploss just in case the unexpected happens. Double bottom at the support,by the way.

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PRMX and CHP update

The PRMX ,after having its 52-week high on a Friday,was expected to experience a sell-off ,based on the rule. During the few hours in the morning, it reached its High-of-Day(HOD) at 5.18 before closing red at 4.85 on a Monday.I sold all before it reaches the previous day’s high. And notice the RSI too that made ‘untog’ at 70. The consolidation right after it is probably the handle of the Cup-and-Handle pattern that is forming.

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Here’s what CHP looks like today. On my last post,it was left with two possible choices it might traverse,the rising wedge or the downtrend channel line. It chose the latter after a few attempts of continuing with the wedge. Look at the last candle,it respected the support of the downtrend channel line. Bounce,come Monday?2017-02-11_214851