-the best and most memorable day @ reiko, missed lots of plays and you never know what you would do when there, whether could make money or not.
-I call this period "earning's craze", anything that related to earning can fly!! it reminds me of "biotech craze" in August and September. the question is whether you can capitalize the opportunties
-the key is to prepare, study and waiting for it and pull the trigger. however there are variety of forms of them, all the charts today need to be treated individually while maintain the big idea in the mind
-saw RPTP premarket and one thing i didn't expect that is the spike only lasted 2 minutes! this is perhaps the most DIFFICULT part when shorting para because you do NOT know where the top is. one approach is anticipating half or whole dollar mark to be rejected and set the risk at that level but at the same time ALWAYS keep position size small to give yourself extra room for adding. (starting 1/10, 1/5, 1/3, 1/2 of full size depending on the former resistance level, volatility, momentum and liquidity)
-Had strong conviction on LXRX because it was former runner and failure so i knew that the spike wouldn't last and would fail, but the question is when to size in, where to size in, what is the risk, and what is the position size.
-from daily chart, again ALWAYS look at daily chart for para shorting!!! the last high is $15.80 and this is $10's stock (using whole dollar mark) so I will short based on my risk at $15. It opened at $13.80 so I was pretty certain it would breakout $14 so my plan was starting to short at $14.50 and will add based on my risk at $15 if I played it. again, keep tracking, keep learning, and adapt!!!
-ERII & WTW are today's 2 big players and there are a lot of heat on them. I had been watching ERII for quite a while but it had trouble breaking $8 market and WTW was bad company and only reason it was up because celebrity Oprah took stake on it.
-the primary catalyst that spiked both of them is earnings! remember we are in a period of "earning's craze" this week literally ANYTHING that is related to earning spiked a ton. both of these 2 plays had 1-2 weeks consolidation while drew in shorts that further fueled up the spike!
-one thing i've found interesting is that you can just focus on the chart/patterns, you do have to connect the dots!!! meaning that try to understand the context of them, catalyst, market sentiment, etc. Trading is like putting together a puzzle, the more pieces you can find, the clearer the picture!
-I am also proud that I didn't trade midday because it makes no sense to me. these runs took off after week long consolidation so there is no one to tell whether it can keep going/consolidation/fading back. BUT I will definitely look for opportunities in late day see if there is ABCD pattern that i can profit from!
-finally another HUGE day for me and all the market participants. In this market, there are tremendous amount of opportunities and the question is are you prepared or not?! this week is awesome to me! I was green every day!! I remember what Modern Rock said, slow and steady wins the race!!!! #consistency!!!
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