I’m ending this week on a good note with a green day. This was very nice to have after yesterdays red day. While yesterdays red wasn’t a Major blow, it’s a blow none the less. I would have preferred if the damaged from yesterday was half the wise of what it was, but today just affirmed that as long as I keep those days in check it’s just a minor setback.
Honestly it’s kind of freaky to have so many green days vs what I used to face. I suppose this is what happens as one grows, but in the back of my mind I’m always aware that at any given point if I’m off my game I could get taken out, which is something I’m not interested in. Being able to dust off a red day and move forward is becoming a bit more natural, but I feel like I still have a mental hump that I need to work through to make it a seamless transition. I have noticed that the more times i dust myself off and get back in there and comeback it builds up a confidence (not cockiness) that tells me that I’ve been here before and overcome, so it’s just another day.
So from yesterday’s notes I took some serious consideration into how I’m treating plays and it honestly kept me out of hot water for the most part…lol. There’s always something that I can work on and today that was forgetting to connect the dots of ARYO’s float, the volume, and the expected craziness. I’ll highlight it more in detail lower, but for me that kind of a setup I will have VERY strict criteria for entry (even down to times of the day) if the stars are not aligning early on.
AYRO
Boy o boy…what a mess I made of this one. I will give myself a little credit here in that I kept my size pretty small on the front side, but I still managed to get swiped even with Tiny size, so it left an impression..lol.
So what did I do wrong here. Well as I mentioned above I completely forgot to pay attention to the float, the volume (rotation) as well as pay attention to the price action as it held key levels. All of that is pretty much a recipe for swipe city, and I should’ve known better. Also if you look at the chart my front side entries were towards the bottom of the channel. I called myself waiting for it to get heavy, but What i was really doing was acting a fool. I need to say to myself “YOU SHOULD NOT SHORT WEAKNESS” . For me that is not a good edge and every time I find myself with an average towards the bottom of a channel is where I get into interesting situations. It’s just not worth it. If I want ot see it get weak then I can let it fail, retest, and let the retest fail. That is a cleaner and safer entry. This trying to be first in line is nothing but a waste of time and efforts.
Now after that front side shenanigans I waited for the backside 8.50 breach to get involved and all was well. I was thinking we’d get a fade and I COMPLETELY read the clock wrong and thought we had another hour left in the trading day, so I didn’t over the .68’s like I could have for $.50 and ended up covering that last move for some chicken scratch. Frustrating to not lock in that nice move, however very reassuring to know that when it’s time for the move to “move”, you can get involved and have some really nice r/r when the time is right. The key is your timing, which goes back to knowing the setup and having patience.
FCEL
Here we go again with the bottom of the channel covers. Luckily not much size was put on here, so I was just an annoyance. I tried again under VWAP, but things just were moving how I’d like them, so I covered for a scratch trade and moved on.
KNDI
OOOOOO what a play here. I had my levels marked out and had a BUNCH of shares (at least for me) located for later in the day and these clowns go and drop an offering before the open. It’s frustrating because I had premarket size on, and while it was a nice move overall, I just wish I had a bit more size on. That was a really nice one to be a part of.
PLTR
Definitely goes down as the trade of the day for me. You can see here that I had the same issue all morning…shorting the bottom of the channel,. I covered and waitied for it to confirm beefore rejoining. I had good size downs that kept me in the game and just let the trade work. I Really wish I would’ve held my full size down to the low 18’s, but that’s much easier said than done. Especially when it pulls an then ramps back up .19-20 cents. Then you’re stuck wondering what do you do..do you lock profits, or do you try to be a hero and go for the big trade. I opted for locking some gains in as I didn’t want to be thinking about could’ve/would’ve/should’ve on this play. It was just to nice and to clean to do it disservice.
Key Takeaways
The main thing I’m taking away from today is that shorting weakness is just not worth it. There is a big difference between shorting the bottom of a channel, vs shorting a confirmed failed follow through and that is KEY. I DO NOT NEED TO BE FIRST. Also if the trade is there then there’s no need to try to rush it. Let it setup in your favor and then attack. Anything else is uncivilized.