$GLYC has been a great trading stock basically since 5/11. But it’s had a huge run, and it was giving off some bearish indications on Friday and again today. The bearish volume and the range compression, which started showing up Friday, was pointed out in this morning’s pre-market comments. The character of the market had changed. There were some good long side daytrades today, and I took advantage of it, but with a very cautious (in and out) approach.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
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Got a question on Glyc and a few on a small trade I just had with BIOC. GLYC chart https://www.tradingview.com/x/0zwBDCtq/ BIOC chart https://www.tradingview.com/x/NRGPaG88/ A) Can you explain me the bars(s) and their perspective volume on GLYC that convinced you to acquire a long position?(trigger if you will) B) I got long on a bad trade with BIOC, However I was not able to identify what I did wrong with this trade. The setup looked pretty decent( at least to me). Can you analyze the chart and tell me if there is something you would had done differently? C) What kind of gap Bioc had this morning and how it should influence our perspective on analyzing the chart as a potential day trade? Due to my noobish skill level I’m only trading very small positions or paper trading on this kind of stocks.
First of all, that thing last night (EST) with silver worked out pretty well Raphael. You were totally on the right track waiting for the reaction. Just be a bit more patient, and give it some breathing room to get a good reaction and then set up. And on what time frame, of course – if it’s bigger picture, do you need a bigger reaction/backup? That’s the question. BIOC – well I bought today too, and breaking my own rule, holding it overnight with almost no profit – in @1.48. First off, the news seems real, not fluff. And certainly had quite a backup today. And you did a good job waiting for the reaction. So the daily chart, and people will look at that and say it’s ugly. And maybe they’re right, but this recent one DRRX, also ugly. But it did have positive news, but closed at the low of the gap higher on heavy volume, and it still managed to have about a 40% rally from those reaction lows in 1 week, and a few people traded it and made money. And we’ll see from here, but some of these may have bigger potential. Like SORL from this morning, or 5 minute chart or GLYC. So while hedge funds and CNBC were sitting around deciphering Trump/FBI, these stocks had all different kinds of trade setups. To be continued.
A) – this is the chart which was posted in today’s premarket. So that support was already drawn in – 11.96 – and to me it was a range trade, and the break itself was the “trigger”. Remember the premarket it said GLYC is becoming compressed, meaning a trading range. And I have talked about how a trading range mentality is different from, for example, a reaction from buying climax setup. So trading range is pure “floor trader mentality”, buy and get out of it. I was getting concerned about the stock with those 2 bigger volume selling bars. So this was pure daytrading mentality. It’s why I repeat about how a really good method is important, but it needs to be integrated into trading skills. And you were asking about determining when something is “ready to move”, it’s all part of the process, so just thinking about what the structure is and the emotion, and people wanted to buy this stock, and there are many scared, so hitting the sell stops below 11.96 was the “ready to move”, back up.
B) – When you see those quick little spikes lower, or higher actually, consider those for probability purposes as all one move/wave. So you can see my viewpoint of it. And just be more patient, you’re recognizing stuff now – the method. Work on the psychology, the planning, the categorizing of probabilities for different trade setups. And not all good setups “work”. The point is the probabilities, and get them on your side as much as you can. Also look at the 5, 60, even daily charts also, even for daytrading/short term trading. And taking profits or losses, not mainly method-based, really just skills/approach. when something seems set up, maybe wait even longer, something to ponder. So just keep doing what you’re doing in real-time, and taking notes, and watching the process unfold. C) – good question. And we consider how low from where the gap higher started, is it the first gap, and are we in a range already. So for when we start really low like this the probability is it’s a) less likely to work, so b) how to “protect” against that, let it have a deeper reaction, and a nice setup, if not then watch for something else you recognize or step aside. So sometimes they don’t have a deeper reaction – guess what, that’s a strong stock, and you then have a new approach. And lastly look at what BIOC did before, and look what we have going on, and too bad they don’t all set up like this. Absorption, with the upward pressure, and sucking out that last supply right at support and right before the legitimate breakout. And that is where you buy the breakout. And even trend absorption.
Got a question on Glyc and a few on a small trade I just had with BIOC.
GLYC chart https://www.tradingview.com/x/0zwBDCtq/
BIOC chart https://www.tradingview.com/x/NRGPaG88/
A) Can you explain me the bars(s) and their perspective volume on GLYC that convinced you to acquire a long position?(trigger if you will)
B) I got long on a bad trade with BIOC, However I was not able to identify what I did wrong with this trade. The setup looked pretty decent( at least to me). Can you analyze the chart and tell me if there is something you would had done differently?
C) What kind of gap Bioc had this morning and how it should influence our perspective on analyzing the chart as a potential day trade?
Due to my noobish skill level I’m only trading very small positions or paper trading on this kind of stocks.
First of all, that thing last night (EST) with silver worked out pretty well Raphael. You were totally on the right track waiting for the reaction. Just be a bit more patient, and give it some breathing room to get a good reaction and then set up. And on what time frame, of course – if it’s bigger picture, do you need a bigger reaction/backup? That’s the question.
BIOC – well I bought today too, and breaking my own rule, holding it overnight with almost no profit – in @1.48. First off, the news seems real, not fluff. And certainly had quite a backup today. And you did a good job waiting for the reaction. So the daily chart, and people will look at that and say it’s ugly. And maybe they’re right, but this recent one DRRX, also ugly. But it did have positive news, but closed at the low of the gap higher on heavy volume, and it still managed to have about a 40% rally from those reaction lows in 1 week, and a few people traded it and made money. And we’ll see from here, but some of these may have bigger potential. Like SORL from this morning, or 5 minute chart or GLYC. So while hedge funds and CNBC were sitting around deciphering Trump/FBI, these stocks had all different kinds of trade setups. To be continued.
A) – this is the chart which was posted in today’s premarket. So that support was already drawn in – 11.96 – and to me it was a range trade, and the break itself was the “trigger”. Remember the premarket it said GLYC is becoming compressed, meaning a trading range. And I have talked about how a trading range mentality is different from, for example, a reaction from buying climax setup. So trading range is pure “floor trader mentality”, buy and get out of it. I was getting concerned about the stock with those 2 bigger volume selling bars. So this was pure daytrading mentality. It’s why I repeat about how a really good method is important, but it needs to be integrated into trading skills. And you were asking about determining when something is “ready to move”, it’s all part of the process, so just thinking about what the structure is and the emotion, and people wanted to buy this stock, and there are many scared, so hitting the sell stops below 11.96 was the “ready to move”, back up.
B) – When you see those quick little spikes lower, or higher actually, consider those for probability purposes as all one move/wave. So you can see my viewpoint of it. And just be more patient, you’re recognizing stuff now – the method. Work on the psychology, the planning, the categorizing of probabilities for different trade setups. And not all good setups “work”. The point is the probabilities, and get them on your side as much as you can. Also look at the 5, 60, even daily charts also, even for daytrading/short term trading. And taking profits or losses, not mainly method-based, really just skills/approach. when something seems set up, maybe wait even longer, something to ponder. So just keep doing what you’re doing in real-time, and taking notes, and watching the process unfold.
C) – good question. And we consider how low from where the gap higher started, is it the first gap, and are we in a range already. So for when we start really low like this the probability is it’s a) less likely to work, so b) how to “protect” against that, let it have a deeper reaction, and a nice setup, if not then watch for something else you recognize or step aside. So sometimes they don’t have a deeper reaction – guess what, that’s a strong stock, and you then have a new approach. And lastly look at what BIOC did before, and look what we have going on, and too bad they don’t all set up like this. Absorption, with the upward pressure, and sucking out that last supply right at support and right before the legitimate breakout. And that is where you buy the breakout. And even trend absorption.