TraderNoxtreme here for a quick trade recap for you all. This one pretty much fell in my lap which is what you want in trading. This being said, the more you search for setups the more trades fall into your lap.
Last night a YouTube video alerted me to a small gap setup on NIO. I quickly charted it and threw it on my watchlist.
Premarket NIO pushed up into the gap (missing the gap fill by a tiny bit). On market open NIO pulled back then pushed up through the gap. I had an alert set at 3.61 to let me know it was time to see what would happen as I would have played it short if we clearly rejected. What happened was we formed a few 2 min candles of support right on 3.61 and then we got one strong confirmation candle which prompted my entry at 3.66. We then pulled back a little and found support at 3.61 (the dip under was a bit sketch but I held through because we had EMA 26 and I knew we had already filled the gap twice so there was some faith involved). After we got through the moment of panic, we pushed back up and I just kept a mental stop at EMA26 until we broke through 3.66 and it was clear sailing. I took off 1/4th of my position at 3.76 to give myself a buffer just in case we tested 3.61 again but it was not needed. We ran all the way up to 3.90 and I put in a sell at 3.98 thinking 4 psychological would be a good place to get out since nearly ever time frame was oversold at that point. We pulled back a little and then I noticed there was a seller who was throwing massive amounts of shares on the ask at 3.85. I waited for an hr but when I saw the hourly candle close as a indecision doji at the top of an uptrend, a big buy volume spike on the 2 min that could not break through and all important time frames were oversold or close to it, I made the choice to exit my remaining shares at 3.85.
Glad I did!
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Dan (CHARTGUYS) is 100% a trader! In the beginning he talks about the feeling and the reaction of a trade that is just a little off. SO AWESOME. This is exactly how this trade felt.
My comment to him;
"You put words to something I have never been able to express in trading! The trade is clearly there; ITS PERFECT, GO; then it just does not happen like you imagine... I sit confused for 10 to 15 min. I then get nervous about my position size. I usually spend about 4 to 5 min thinking about why I should exit (hesitation BAD). I quickly do some math to check my entry VS cost average if I sell partial and I think about the trade fees vs current profit (bigger deal in my case then yours i'm sure). Then usually I do the right thing. I actually have had both outcomes over the last two days. Yesterday I panicked and sold it all, then the stock went like 15% more. Today I sold just 25% of the position and held the other 75% through a little dip that broke support but quickly popped back up to give me 20 more cents per share on top of the 10 cents I got on the quarter position I sold.
In any case. I think I get it and its cool to hear you talk about it."
Added info not in comment:
In both cases my trades were profitable day makers in the end but the feelings you go through are real!
Mastering this is what trading is I think. You must see what is going to happen, but be willing to accept you are wrong. You should be profitable when you are partially right and take the loss when you are totally wrong. You should know if you are partially right within 5 min of entering a trade, totally right within about 20 min, wrong within about 15 min. This could vary depending on the time frame you trade or your risk reward I guess but I find that this is enough time for me to figure out the trade I am in.
Dan (CHARTGUYS) is 100% a trader! In the beginning he talks about the feeling and the reaction of a trade that is just a little off. SO AWESOME. This is exactly how this trade felt.
My comment to him;
"You put words to something I have never been able to express in trading! The trade is clearly there; ITS PERFECT, GO; then it just does not happen like you imagine... I sit confused for 10 to 15 min. I then get nervous about my position size. I usually spend about 4 to 5 min thinking about why I should exit (hesitation BAD). I quickly do some math to check my entry VS cost average if I sell partial and I think about the trade fees vs current profit (bigger deal in my case then yours i'm sure). Then usually I do the right thing. I actually have had both outcomes over the last two days. Yesterday I panicked and sold it all, then the stock went like 15% more. Today I sold just 25% of the position and held the other 75% through a little dip that broke support but quickly popped back up to give me 20 more cents per share on top of the 10 cents I got on the quarter position I sold.
In any case. I think I get it and its cool to hear you talk about it."
Added info not in comment:
In both cases my trades were profitable day makers in the end but the feelings you go through are real!
Mastering this is what trading is I think. You must see what is going to happen, but be willing to accept you are wrong. You should be profitable when you are partially right and take the loss when you are totally wrong. You should know if you are partially right within 5 min of entering a trade, totally right within about 20 min, wrong within about 15 min. This could vary depending on the time frame you trade or your risk reward I guess but I find that this is enough time for me to figure out the trade I am in.