this week has shown once more that it is not as easy as it seems. There were incredible opportunities, but every trade which I made seems to have taught me the wrong lessons.
But let us have a look at the weeks.
Monday – 25.09
On Monday, I had some nice setups on my watchlist. Unfortunately, uni-lessons took longer than expected. Thus, I missed these opportunities (which of course does not mean that I would have been able to take them).
For the rebound setup SPI nicely squeezed from 11.5 cents to 15 cents.
SDRL went from 39 cents to 43 cents…
and even WAC went from 60 cents to almost 70 cents.
Let´s now have a look at the OTC stocks on Monday. Friday´s breakout GLNNF actually did not perform as predicted by me. Contrary to the breakout pattern, it did not gap up, failed the morning spike and subsequently sold off pretty heavily.
And then there was the trade which I actually did exucute. NSRPF, another OTC stock, had broken out earlier during the day. In the afternoon it showed some weakness, selling off back to the breakout level again. I took this opportunity to buy the dip at $4.6. Here I have to mention that NSRPF is not a very liquid stock and at some points minutes would pass without an occurring trade. However, NSRPF directly moved in my direction and followed a positive trend. It went as high as $4.8. The pattern seemed to work and I was ready to give NSRPF a lot of room, putting my stop below $4.6. Then however, at $4.8 something very weird happened on Level2. From one moment to the next, the action turned from supper bullish to super bearish. Buyers completely disappeared at the $4.8 level and NSRPF fell to $4.7. This by itself would not have been a problem, but given the bad liquidity I feared a complete crash. Long story short – I panicked and sold for a minuscule gain at $4.72. What happened afterwards? NSRPF directly ripped and went as high as $5.4 – yeah $5.4!
Another stock breaking out nicely on Monday was IMLFF. From the breakout level at 37 cents, this went to as high as 45 cents on Tuesday.
And here we are on Tuesday and the start of my loosing streak. What I was watching on Tuesday was ARDM, one of the hot stocks of the week. Given the chart setup I thought that it could squeeze shorts a little bit. At the open it had a huge red candle. I bought it then on the uptrend at $3.29. ARDM went to the crucial high of the day at $3.35. This is were one could see the same thing which was present in my other loosing trades too. Huge sell orders came in and pushed ARDM down again. Finally, I got stopped out at $3.20.
And what happened then? Later in the day ARDM did break out and squeezed to $4.2!
Wednesday – 27.09.2017
On Wednesday SRAX was the one I played, once more looking for the bounce. I bought SRAX close to the high of the day at $2.21. It all looked quite good and SRAX shortly squeezed to $2.3. Once more at this point a huge wall of sellers (short sellers I suppose) showed up. SRAX sold off, attempted the $2.3 level once more, failed and I got stopped out at $2.16. Given the fact that I was up comfortably at the $2.3 level, this loss was kind off painful.
Just to mention it, NETE had a very nice red to green move on Wednesday.
Thursday – 28.09.2017
And then there was Thursday. Buff. Well, what can I say. On Thursday I traded INPX which led me to a loosing streak of three trades in a row. INPX had sold off quite heavily on Wednesday and I was looking for the bounce play. The open was perfect. INPX selling off and then grinding up. I entered at just under 39 cents. It all looked good and INPX grinded higher and higher. At this point the 37.5 cents level had held very nicely as support. Thus, I increased my stop to 37 cents. INPX traded at 39 cents, testing the high of the day. Huge sell order showed up on level two but INPX held steady. Then it happend. For the blink of a second, all buy orders above 37 cents disappeared, INPX crashed, I got stopped out and INPX went back to 39 cents. All this took less than a second. I have already heard about market makers bringing the price to specific price levels in order to trigger stop loss orders. This is what seems to have happened here and I will have to put mental stops in the future rather than hard stops.
Well, this was my pretty rough week. On Friday I was planning to take a break but did end up watching the markets. Once more, some bounce plays were on my watchlist. The pattern in the end was confirmed but the intraday price action was difficult and I did not end up trading the setups.
NETE went from the lo 70 cent area to $1…
SRAX squeezed from $1.8 to $2.5…
And Itus had a very nice short squeeze in the afternoon too. After breaking VWAP at $3.28 it squeezed to $3.85.
Finally, towards the end of the day I did enter another trade. Even Though I did not feel compelled to trade I decided to take advantage of this nice setup. FNMA has been trending towards the crucial $3 mark for some days. Close to market close I entered with a small position size at $2.98. FNMA did reach $3 various times before the bell rang but sellers defended this level pretty heavily and we have to see if it can break on Monday.
I have to take the right lessons out of this week. But I have to admit that it is not easy since I did trade “good setups” (at least I had thought so) but I still ended up loosing quite some money. Maybe I have to ask myself if I did overtrade throughout the week.
Let´s see for the next week.