Wow, I think this might be top all my trades, not because of how much I made which isn't that much compared to my other winners but the fact I stuck out a 6% drop, watched the stock and how it was reacting, decided to stay in and came out on top. I'll admit, I felt like puking when I got in at 4.20 and saw it drop to 3.50 I couldn't believe what I just did but I stayed calm, I wasn't watching how much I made or lost and paid attention to what the volume and price were telling me.
I initially put in a market order when I saw it hit 3.90 which is indicated by the black arrow on the price section of the chart but never got filled until 4.20 At that point I thought I just got in at the top and pulled a rookie mistake. It inched higher a little bit then fell hard. But what I thought was weird was that it fell hard at first on very very light volume. I thought it might of been the pros trying to shake out the rookies before it ran up. Once the big dip came in on light volume, the selling volume slowly started picking up, maybe from rookies getting freaked out or rookies getting their stops hit or whatever. I stayed in and when it hit 4.30 I said screw it, I've got to lock in some profit and sold half my shares. My nerves lightened a little bit and I could really focus now even more on what was going on.
I knew that the high for yesterday was 4.70 and I really didn't think today would be able to hit those highs especially because of the volume it did yesterday and how much volume we've done so far, it just didn't make a lot of sense. So when it hit 4.50 I saw the bid drop huge, I think it fell to 4.25 and I said, "ok, this might be the top, if not I don't care, I like the price, I want out". So I put in a limit order at 4.50 while it was bouncing around 4.50 the volume started running up and made a new high for the day indicated by the black arrow on the volume section. That tells me the public is now in the stock and it's a good price to bail. At the time I didn't know the volume would make that high but when I was sitting there waiting for my limit order to get hit I was watching the volume and it confirmed what I was thinking.
All in all, this has to be in my top 3 best trades of all time. I'm stoked that I stayed calm, watched the action, made a decision, stuck with it, and came out on top. I didn't sell because of the public freak out and rode it out with the Pros, haha.
No comments:
Post a Comment