Charts and Lessons, Daytrade, Short-Term

There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call the past weekend. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades. This post is about my trades on 3/6, discussions about the TREND, technical situation and setup for each one. Quite a few trades, but a couple were carry over trade exits. BPTH was my biggest focus, and most of that is discussed here. The carry-over trade discussed below.

All stocks which I buy are ALREADY IN UPTRENDS on some time period when I enter.

A very important thing to understand is holding periods – how to know how long, when you would want to hold overnight or longer, how you know that going in. Of course, everything is probabilities, but the answers depend on – how volatile is the stock to begin with, what is the type of setup, what is the type of the  technical situation and where are we in that situation – those are the biggest factors. Readiness to move – RTM. Also, I use rules and (usually) mental stops. And will most always put in a stop at scratch on any positions left after taking initial profits, like with (too early) OHRP below. I will give brief descriptions of the trades and much of that is described on the charts themselves. Hopefully this can help you with your own trading education and progress.

 

BPTH carry-over, sold wildly too early, pull up a current chart, absolutely amazing short squeeze in a stock with under 1M float – tiny. Will be looking to try and pull some more out of it. The short sellers are having a rough time:

 

 

 

First RTTR, I’ve been watching this stock for a few days, and how it’s setting up, believed that – THE TREND WAS UP, therefore looking to buy – somewhere. The first comments were from a setup I was watching for 3/5. So with this trade, what did I say? – “Trending up, angling up, appears to be preparing a bko, meaning that area is a PRE-BKO. That recognition was absolutely correct, and I got almost immediate action from it, as the stock blasted off, actually got to 1.08 from around .87. What a move. I caught a nice chunk, sold too early, but happy with it. Very small time spent in trade – about 10 minutes – remember RTM?. And it got clocked after the spike up:

 

AQMS was a hold over trade, sold 1/2 into the res/bko line, believed this was an upper level pre-bko spring setup. The 60 first, the accum area, the right side of accum, but I took profits into the res. I put in a bid to buy below supp, thought it is a good entry spot, will attempt to sell rest on a rally, but scratch stop rest:

 

 

 

ICON was also a hold over trade exit. I have been watching ICON and several small retailers which have gotten clobbered but set up beautifully with a great accum area, like PIR, I’ll discuss that one in another post, I started buying it at at .44, and it more than tripled, I caught a good chunk of it, no position now. As for ICON, I have been watching it for weeks, first the 60s – a bottom is a PROCESS, be patient:

 

 

Notice the patience, watched it and watched it, I never buy the lows, I wait and wait. And watch those SOSes build up, I did try to buy the bko but missed. Then waited for a pullback, scratched the first one, then tried again, and that one blasted off and I starting taking profits, explained in the charts, will attempt to sell rest on a rally, but scratch stop rest:

 

 

OHRP, another quick in and out, and another sold way way too early as it got up to 4 in ah trading. First the 60, with the box it was trading in, it was trending up/angling up all say, SOSes, I believed it was getting ready to move. And another one I lucked out on, as in just a matter of minutes, OHRP started moving – remember RTM? I took initial profits, and then it trades all the way back to my entry, I took the scratch, but it turned around and soared all the way up to 4 in ah.

 

 

 

 

RENN my only loss for the day, really stupid trade, but I missed it several times trying to buy on the way up, and was fixated on the….uptrend? The trend AND THE MOMENTUM were down, but I went for a bounce trade there, it did not work, and took the loss on the little bounce:

 

 

 

 

 

 

 

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About traderscott 1128 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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