jangseohee

Capitalized on Failed H&S, 10-20% success rate

NASDAQ:GPRO   GOPRO INC
347 4 3
Following up with my last aggressive trade on buying when price of GPRO             gapped down and fell below the neck line
4 days ago. 1st, as you can see from my last post the channel that i've drawn isn't so clear as this one.

Still, the falling knife hit my long triggered @S1 of that day which is 65.21.
Knowing that price 100% will go lower to clear up all the bulls (who felt the pain and had to cut loss), i purposely put in another long @63.33 which is S2 to average up. But the lowest it went that day was only 64.74.

Took handsome profit when market open today, sold 9 contracts of call @81, left 1 call options to ride whatever trend.

P.S. I am willing to take initially loses every single trade i initiated.

lmsmith
2 years ago
I was recommended to this site by a fellow trader, as I was roaming charts and others technical analysis, I came across your page (in early oct) I must stay, you are Excellent!!! I followed your call on KO (of course with some of my own DD) but your technical analysis skills are on point. you will see me giving you feed back alot. GPRO great call, I just watched.
Reply
jangseohee lmsmith
2 years ago
Thank you very much for your feedback. As a matter of fact, i am still learning everyday to align the TA tools that i have good grasp to make high probability trade. As you would have understand that trading is a probability game, losing is part and parcel of the business as long as your profits outrun the loses.
I was initially a "Textbook" trader when i started trading 1.5 years ago where i follow the 1 tick above/below rule on S/R line. I was stopped out all over the place making me that got me to start learning on psychological of trading.
Hence, i have become extremely unorthodox in my approach to trading certain stocks frequently which will definitely incur losses first to have a larger profit later. This might spook some traders and they might even ridicule my way of trading.

Yes, even Tim (Moderator) felt i was a bit crazy to sell short KO when Buffett has huge holding on it, a fundamentally sound company. But it is the CHANNEL & Lagging indicator like RSI & MACD that gave me so much conviction that i was compelled to take the short trade

I believe many would find me insane to buy when a H&S top broke down the neckline, which is supposed to be a strong sell for the case of GPRO :-)

So my chart is very simple and not colorful, based on Channel, EMAs, pivot points, S/R line or zone, chart pattern plus RSI & MACD divergence. As this is already sufficient for me to trade.

See you around
Cheers





Reply
lmsmith jangseohee
2 years ago
I've been trading since 2007, how ever 2013-2014 My official 1st year trading full time, I must say its a psychological game, I am all about high probability trades. At times I find myself into positions either too early (not enough patience, stocks goes against me) only for it to eventually go into the direction I want. Or too late, because I chased the trade instead of placing the trade with my first instinct. So the trade then reverses on me. Mainly these two scenario happens when I day trade. My swing trade approach is a bit different. more time for the stock to work into your favor.

I am still learning a great deal myself. I am looking to perfect my swing trading, the less I day trade, the less stress I will feel ;-) . I see that a lot of your charts are based on swings... Excellent. And thanks for your response
Reply
jangseohee lmsmith
2 years ago
Hi Smith, thanks for your response. You used the right word "Psychological game", essentially Mr. Market will test all of us on how much pain we can take, in fact we are on the right trade (Mr. Market just create little hiccup on opposite direction to chicken us out), if we fall into this trap very often, our cut loss strategy would have kill our account. Hence i experienced a lot of time what you have experienced since 2007.

Anything less than a day trade in futures & fores, like 1min, 5min, 15mins, 30mins, your technical analysis has too be extremely strong with your tenacity and conviction with the psychology which can take a lot of tolls on us.

Channel is my main guidance which has worked exceptionally well for me, plus the RSI & MACD divergence, i can say that my trade is almost 70-75% of winning.

I still get very impatient to jump start trades very often :-) Lets keep learning by starting from empty piece of chart with only candles/bars.

Cheers
Jang
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