Sorry for posting on Tuesday this week and last but I have been busy, busy, buys! Nothing like studying and refining while the trades have been sketchy due to Trump and his inconsistency. How did you manage last week? Leave a comment below, I want to hear about how your trading week was!!!! As for me, I stayed out and watched. I use Sykes Sliding Scale (click the link and check it out) and if it isn’t an 80 or above, then I don’t want to touch it. Tim Sykes likes 73’s and up according to his trader checklist which you can watch for free.
When Not To Trade
Today I want to talk about when the best trade is no trade! Last week was a great example of a time to study and possibly not trade or be VERY careful when planning out your trade. Holding overnight seemed waaaay too scary for me and so did the day!!! I made one trade on $CETX but cut my losses quickly for a loss of $6.00. John Papa was having a rough time as well. He even said that Sometimes No Trade Is The Best Trade as Timothy Sykes likes to remind everyone. We all had to admit it at some point. Luckily, John Papa found his groove again! I took this as a learning experience and watched a bit of the news and the major stock market exchanges to gain an idea of how the penny stock market may react. After all, remember, 3 out of 4 penny stocks follow the overall market! Another great lessons Tim teaches in his Millionaire Challenge https://bit.ly/3a8T4Ki (GO JOIN)!
Lessons I Have Learned
I have definitely added to my daily trading strategy and routine. I ALWAYS check my laptop or my phone to see how the major markets are reacting for the morning. I make sure to ask myself if I am noticing a correlation. This helps me choose the stock that fits my criteria a lot better and be a better sniper.
I have decided to focus on ONE pattern right now which is morning dip buys. I am going through the different charts and time frames to help me with this analysis. I am even taking screen shots and printing them out so I have them hanging on my walls with small printouts taped to my laptop.
Writing out the behavior of these charts are what I am working on as well. I have been noticing a trend that premarket spikes usually dip around market open then spike again. Some I have noticed spike at market open, dip, sometimes consolidate, then spike again.
Volume is a GREAT indicator of a stock that is getting ready to spike. I have noticed that volume starts increasing more than other stocks and it typically plays a role in the capability of a potential trade. The volume starts increasing at a decent pace too.
Following Rules and Writing Them Out
I am taking the time to write out my rules for the behavior and patterns of the stock and taping them to the bottom of my keyboard on this laptop so I am reminded daily of what I need to look for to be a better sniper and not break my rules as easily or forget them. By repeating this process I plan on mastering the morning dip pattern. So far, I have found two stocks that followed two different morning dip patterns that I watched instead of traded. Yesterday was $RKDA as it had a perfect dip buy opportunity based on it’s one month, one minute chart and Today was $OSN where it dipped, consolidated, spiked. Both were great this week! $OSN had the volume that I was looking for and it spiked beautifully after it consolidated for a bit. I traded the small dip on $EDNT as I anticipated a higher increase in volume but it faded after a few. Anticipating vs. Proving is a whole other story. Another reason why I am currently writing and my revising my rules.
All in all, Sometimes No Trade Is the Best Trade. Keep an eye on the Major Stock Markets to see their performance as 3 out of 4 stocks follow the market. Write down your rules and master a few patterns. Every trade (or no trade) provides a lesson. Volume is a MUST! And make sure to play it safe out there! As Timothy Sykes says, “It’s a battlefield”!
Good luck and don’t forget to leave a comment below! I want to know how you did last week as the markets dipped 200+ points.
That is my lesson for last week, can’t wait to see what this one brings.
(FYI… I have decided my blogs will be posted once a week for now. They will be a recap of the week. See you Next Sunday or Monday!)
P.S. Go JOIN ( https://bit.ly/3a8T4Ki )Timothy Sykes Millionaire Challenge !!!!!
I want to provide a small disclaimer:
I am in NO way a professional nor do I claim to be. I do not manage anyones 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 1 month and a few days with paper trading on StocksToTrade. I am up +$500 for the month of July and 1 day of June. 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
thank you for reading my blog!