What might have helped me was the fact that we went to the hills on NC for the 4th and I only take my laptop and 19" monitor with me when I travel. I think this forces me to focus on just a few tickers that have the most solid setups. It limits how many tickers I can follow throughout the day and keeps me focused on maximizing each ticker's potential. When I got back home Thursday and Friday were not good days. I took 1 trade each day for a small loss and never found a solid trade. Just a couple of fake-outs. This is what I take with me when I travel. It breaks down in minutes and I have the wiring attached. I can leave my main trading station untouched. I may start leaving my main station off and just trading with this!
All Trades Long Trades Short Trades
Total Net Profit $2,825.00 $1,971.00 $854.00
Gross Profit $2,878.00 $2,024.00 $854.00
Gross Loss $53.00 $53.00 $0.00
Total Trades 7 6 1
Winning Trades 5 4 1
Losing Trades 2 2 0
Avg Trade Net Profit $403.57 $328.50 $854.00
Avg Winning Trade $575.60 $506.00 $854.00
CTRP hit my gap-down scan Monday morning. I looked at the daily chart and quickly identified a gap that was in play. It is highlighted in yellow. I noticed how the top of that gap held as support for a while. I also noticed that it has been making lower highs and it appeared to me that it was beginning to trend. down. Friday it had dipped below that support but got bought back up and then closed on the support level. Monday morning it had gapped down below that support. I didn't find any news on it but it is a Chinese stock so in my mind that was a good catalyst for that ticker to be "in play". My plan was to trade it short for the gap to sell off and take profit at the bottom of the gap. The gap was about $4.50 but I expected to get at least $3 of the move. The pre-market chart looked messy but I was still optimistic about the trade. It was still below the support level from the previous weeks.
I always wait at least 10 to 15 minutes after open for a ticker to settle and pick a trend before I trade it. I especially made it a point to wait in this case because of the crazy pre-market action. After the first 5 min. candle printed I felt my plan was in trouble. The second candle confirmed it when it made a new high. The next 3 candles were Doji's but all traded above VWAP so my plan was dead. I took it off my watch because I didn't have a plan to trade it long. As you can see the ticker recovered and the daily support level held.
The next morning it hit my gap down scan again. Again it gapped down below the support on the daily chart but this day it didn't have a lot of volume or the crazy action. I had the same plan for it Tuesday as I had Monday so I just waited for the open and watched the price action. It did exactly what I expected it to do. After 5 minutes of indecision it started to pick a trend and I was able to get a good entry on the 3rd 5 minute candle. You can see the difference between Monday's chart and Tuesdays chart.
$854 profit CTRP Short Stock by AverageJoeTradr
$426 profit CTRP Long Stock by AverageJoeTradr
$558 profit CTRP Long Stock by AverageJoeTradr
My initial profit target was the lower gap line but it made it there so fast I left it on. The next candle printed green and the next one was headed in the same direction but I stuck to my stop being the VWAP and I let the trade work. It came back to me and hit the lower gap line again but now I had more confidence in the trade and I said that I would not cover unless the price action gave me a reason to. Now it printed what I like to call a reversal hammer the second time it hit the lower gap line but I waited for the next candle to make a new high, which is what I normally do when I am tracking reversal setups. I didn't make a new high so I kept the trade on. When it finally printed another hammer on LOD, I was alerted again but this time I got the next candle to make a new high so I took the trade off. I immediately started looking for the reversal since it was the perfect setup that I look for everyday. The next candle gave me confirmation so I took the reversal trade. My initial target on reversals is always the VWAP so I looked to take profits there.
The next leg I look for on reversals is the move off of the VWAP or the "VWAP Pop". This usually takes a while for the ticker to consolidate and gear up for the pop but this time at was ready within 15 to 20 minutes and I caught that trade for another decent gain. Once this setup works my stop becomes the 9EMA. Once it closes under the 9 I will usually take the trade off. If it dips below it's fine. It has to actually close below it for me to act.
As you can see there was actually a 3rd leg to this trade but by this time my computer was off and I was done for the day.
JMEI hit my gap down scanner on Wednesday. This ticker had a lot of volatility along with the other Chinese stocks over the last few days so to me it was another ticker that would be in play. I looked at the daily chart and saw how this ticker had been fading over the last few days. Based on the daily I came up with 2 plans. One if it sold off like it did the day before and hit the support in the low 15's and reverse and one if it broke support and just kept fading.
$685 profit JMEI Long Stock by AverageJoeTradr
$355 profit JMEI Long Stock by AverageJoeTradr
I waited for the open and the first candle gave me a strong decisive move up. I chose the long plan even though it didn't get down and test the support level on the daily like I anticipated. The solid price action told me the story. I entered on the 2nd 5 minute candle with my stop being the VWAP. My initial profit target was the intraday resistance from the previous day. My target is usually the upper deviation band on the VWAP but the resistance level was so defined I felt that would make a better initial target and then go form there. It was well on it's way but the price action scared me out. I saw a large amount of sellers come in over 18 so I got out. Turned out to be the right move. I then waited to see if it would pull back and pop off the VWAP. I got the pop and my plan is usually once the trade is working my trailing stop is usually the 9EMA. Once it got over 18 again I started seeing some crazy things on Level II so I took profits. Turned out to be a good move. That area of resistance around 18.30 turned out to be strong again.
These trades do not come all the time. The Chinese markets made these trades possible. I know now more than ever that I need to continue to focus on the tickers in play early. Make sure I do my technical DD and have a plan in place at the open. When I find a "hot" ticker I need to keep a close eye on it throughout the day. Also, I learned not to give up on my plan unless I get a signal to do so. Trust my abilities and what I see. And oh yeah, hide my P&L. It will cause me to make irrational decisions and limit my profitability.
Also, please critique my videos when I get them posted. It should be in the next day or so. I like doing those so I'm hoping it will keep me from having to write so much but I want to make sure I am doing it the right way so any input is welcome.