Category Archives: Lesson Learned

Lesson learned – How to find the best play

Lesson learned: How to find the best play:
– pre market mover ( big percentage )
– volume
– news

Scenario:
•Big Percentage premarket and hold >30% before select open :
– wait for big opening dip around 9.45 then buy on U
– then watch for short after 10am (unless it is going higher)

•Big percentage premarket but dip <30% before open:
– wait for small opening dip around 9.45 then buy on U
– then watch for short after 10am (unless it is going higher)

•The higher the percentage, the longer the U
•The smaller the percentage, the smaller the U before it takes off.

Timothy Sykes profit.ly profits

Learned something today – Short on Nice Round Number

Short on Nice Round Number

Say a Stock is running on momentum from $3.20

The next stop will be $3.50, If it pass $3.50 the next stop will be $4.00, $4.10 or $4.20

If the chart is looking over extended and volume is fading and the news is not too good. Then you can consider about shorting above $4.00 and use $4.20 as the maximum stop loss.

What if the stock starts to run again? Cover with small losses or small profit and let it run again.

This time is will run to $4.50 or the next stop $5.00.

The ideal trade will then be looking at the charts and Technical to see whether $5.00 can be the top. If there is a double or triple tops (Volume fading, Top MACD turning down, Fast STO reversing). They it is safe to consider shorting it around $5.00 with stop loss just above $5.00

What to do next? You have 2 choices:

1. You can consider locking in profit on the way down.

2. Hold it until you see people starting to cover and the chart is reversing.

 

Timothy Sykes profit.ly profits

Learned something today – Sell or cover before you end up with losses

Sell or cover before you end up with losses

Say if you have enter into a perfect trade either Long or Short, and the chart is running the way you want. You are then having a nice GREEN profit. Suddenly, the Chart starts to turn. What will you do?

2 Choices:

1. Sell or Cover to protect your gains (Lock in profit)

2. Wait for the next Leg up/ Down

If the chart is reversing close to your entry price – Sell or cover with a small profit before you end up with losses.

 

Timothy Sykes profit.ly profits

Learned something today – Make prediction and look for the overall trend

Make prediction and look for the overall trend

I realised the issue that I have is trying to play on the technical of the chart and didn’t look at the overall trend/ Chart.

Example:
If the share have an uptrend all morning and it is on its way up to the $10. Don’t short it on the way down even thought High Fast STO and High MACD is still going down. This is because this share will still run to $10 after the Fast STO reverse and MACD start to reverse. The reversal can be quick and you will end up breakeven or even a small loss on your short.

 

Timothy Sykes profit.ly profits

Learned something today – Learn to trade like you are in a big position size

Learned something today – Learn to trade like you are in a bigger position size

The problem that I have previously while training on small position size is that I feel like I can risk my small portfolio and trade crazy moves like:

  • Buy/ Sell premarket
  • Buy when the market open
  • Hold shares until the market open
  • Buy too much late when it’s ready for experienced traders to lock in profit
  • Short too much early when there is still MOMO and trendline didn’t break
  • Didn’t lock in profit on the way and when the stock starts to reverse, I hold until it reach my 1% or 2% stop loss.

What I will be doing now to rectify the problem above is:

Trade like I am in a bigger position size. I will assume that my position is size is multiply by 10.

Eg. If I am only trading with $1500 position size, I will assume that I am trading with $15,000. This will therefore make sure that I take the Profits and Loss seriously.

I will keep on working on this rule to make sure I will never trade crazy stuff.

Timothy Sykes profit.ly profits

Learned something today – What to expect on Previous Runner

Previous Runner/ Spiker can run 50% or more on the first day and even continue on the next few days.

So, how would you play if you have missed the first day and watching it for the next few days?

The best way to do is to wait until market open and wait for 15 minutes for it to settle down to see whether it will continue to run or fade.

Things to look out for:

1. Signs of spikes (Stocks going up)
– volume
– still holding green on the day
– another news or article
– chat room/ forum (audience)
– higher high and higher lows
– stair step chart with trendline

2. Signs of fading (Stocks going down)
– Red on the day
– heaps less volume compare to day one
– no news or article
– lower lows and lower highs
– no signs of reversal after 9.45am
– Obvious legs shown on the chart (bear short on every pop)

 

Timothy Sykes profit.ly profits