I am writing this blog early since I have been late so many times. Today I want to discuss plans. Multiple plans. Plans for Plans. Plans for Plans if Plans don’t go as Planned and planning for that plan. Preparation is key as Tim says. That is the point I am trying to make and a very important lesson I learned Friday from $LMPX.
So How Do I Create My Plans?
Here is a chart of $LMPX
As you can see this is a breakout pattern. I think even a stair stepper. But there is a gradual uptrend that I missed. I looked above and saw a familiar pattern that intimidates me. This being the 3rd one I have witnessed. I forgot to look at the 1 month chart. This is also set to 15 minutes so I can clearly define a possible support and resistance level. I heard Tim say this stock has been soaring and it has been a nice short squeeze. So what did I plan for that made me write this post?
I first planned for a morning panic dip buy as I thought it would dip. There was a small dip from roughly $23 down to $20ish and I wanted a bigger panic. Mind you, I don’t watch this price of stock very often as I consider 20s out of my comfort zone, this left me lacking in preparation. Based on this experience, I learned a lot.
I wasn’t sure where my support zone would be for a panic, I was thinking more around 18s -19s (It’s not an exact science). But I was aware of my inexperience or confidence with this price range so my back up plan was to watch if it didn’t trade the way I wanted. When in doubt, get or stay out. There is nothing wrong with missing a trade and sitting in cash. If you read the last blog post, you can clearly see how there is a potential breakout if the stock burst with volume. Of course, as Tim says, Fridays Are Special! Fridays are more likely for a short squeeze to occur as they are the new pumpers as he repeats. It is this advice that I should have had at least 2 plans in mind. Tim Grittani mentions this many times in his interviews with Sykes. Now I understand what he meant by having a plan incase the stock spikes or crashes. Which My original plan was to Dip Buy into a massive morning panic AND realizing I needed a plan for the stock to breakout into a beautiful Friday short squeeze. As I am sure most of you can see, watched, or know, this stock went from $20s to around the $40s on Friday.
After I saw the spike breaking above previous highs, I knew I missed a stock that I have been studying and trying to prepare for like $SES that went from roughly around $3 all the way to roughly $27.
You can see the small dip which was roughly from $23 down to $20 right at market open, It isn’t and exact science and because I only had one plan, I wasn’t prepared for this stock to skyrocket. It didn’t look like the proper dip to me. This wasn’t the morning panic pattern that I thought should happen and so I decided not to trade. It was good that I sat out, but I should have been prepared for the short squeeze.
- Always remember to make At Least 2 plans for a stock, especially on a Friday!
- My two plans are Morning Panic Dip Buys on runners
- And breakouts into mornings spikes, mostly on a Friday
- When in doubt, get or stay out
- Study the pattern until you are comofrtable
- Paper trade until you understand
- take notes
SO how do you decide which plans to prepare for when prepping for a stock?
I have very specified patterns that I stick to. By practicing my 3 patterns I am better prepared when forming a thesis for my trades. If they fit my criteria, which is definitely runners, I will ask, are they a potential breakout or panic?
- Asses the criteria for my panic and breakout patterns
- Create my IF/Then statements and make sure I have my lines prepared.
- Write down these plans to confirm them in my mind.
- KISS – keep it stupid simple – don’t complicate things ( I say stupid simple instead of simple stupid as I don’t like calling myself stupid, but I prefer to say it’s so simple it’s stupid… just my own psychology there)
- If you keep it simple, it’s easier to be prepared.
- Having enough time premarket to prepare a plan also helps, but don’t force it.
- When in doubt, don’t trade and just study.
- prepare, prepare, prepare
What are my 3 patterns?
1. Morning Panic Dip buys on recent runners.
2. Buying morning breakouts over premarket resistance and multiday/month/week breakouts.
3. First Green Days with news, history, preferably OTC, etc.
This post is to recap what I did wrong and how I could have been prepared for this stock. My lack of preparation caused me to miss the potential of this kind of opportunity. I did not have FOMO, but chose to take this as a time to reassess what I can do better to prepare for the coming Fridays. I am sorry if this wasn’t very detailed but it mostly falls into last weeks blog post. This is what happens when you aren’t fully prepared.
Let me know if you were watching this stock, how you were prepared, and if you profited, what lessons did you learn? I want to hear all about your experience. This is what happened to me. Only I can prepare and study and plan to be ready for this in the future. Make sure to leave comments and message me! Have a great weekend and hope you are taking this time to prepare for this week! Cheers! Click the link to gain access to 6k+ videos to help you learn these patterns https://bit.ly/2RhFVGc
I want to provide a small disclaimer:
I am in NO way a professional nor do I claim to be. I do not manage anyone’s money nor do I want you to follow my trades. My posts are solely for entertainment purposes and for myself to become more transparent on my trading journey. I use these posts to track my own progress. I do NOT recommend you try my strategy or jump into trading without a verified guru/teacher. I am an untrained trader who has been practicing for a few months and a few days with paper trading on StocksToTrade. I am up +$1300 since the month of June 27th, 2019. By the time you read this I may or may not have traded the stocks I post about. I will not guarantee you will profit from trading as 90% of traders lose. To become consistently profitable is not a typical result. I am in NO way responsible or liable for your decisions or actions as a trader. I, again, am not professional so there will be grammar and spelling errors. Just because I suggest something does not mean your results will be the same as mine if you try. My suggestions are what I am doing, have tried, and what may have or may have not worked for me.
Hello there, My Name is Tessa Lamping and
thanks again for reading my blog!