There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call recently. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades.
READINESS-TO-MOVE:
Building upon this post here, another huge winner today, this one with PULM. And yes a crappy stock, BUT at one point during the session it was THE single strongest stock in the world. These are pure trading instruments, the overall trend is down, but I am trading the here and now – TODAY – the next few hours or less.
So again, I was 100% convinced that the TREND was up in PULM….at that specific time. And this is what hurts so many people in these little stocks – you need to also get out – QUICKLY. Don’t sit in these things. They are pure trading vehicles. I traded index options for a long long time, and still do at times, but options have no quality to them, no emotions, no press releases, no company news, just pure instruments to trade. These little stocks are not the TWLOs, ZSes, CRMs, WDAYs, TEAMs, FTNTs, TTDs – all of those cloud stocks which I recommended at WAY LOWER PRICES than where they are now – all discussed here. Those are high quality, bko stocks, all at/near record highs, which you can buy and “hold” – for a while – not forever. But these little stocks – awesome awesome little very volatile trading vehicles – are like options to me.
The “SECRET” setup:
With PULM, I believed the TREND and the MOMENTUM were strongly..strongly UP at the time – look at first chart below. It did something, actually a few things, but something in particular which I have taught, and use, especially with these crappy little yet awesome traders. And as discussed in the previous post, PULM did that one particular thing – SETUP – which I use, and which consistently keeps me out of the ones about to get clobbered (look at ADXS below), but allows me to enter into the ones, on a high probability basis, that then go on to have new and quick and big, sometimes huge, rallies.
Again, the TREND was up in PULM when I bought it, I used a limit order in this one – dip buy setup at 1.74, sold 1/2 at 2.02, the other 1/2 using a limit order sold the rest way too early, but very happy with the trade, 16% and 32% all within about an hour. And where else (except options) can you get those kind of returns – WITH NO MARGIN. So – is that READINESS-TO-MOVE?
And contrast the PULM opening setup to ADXS, the last chart below. My “secret” setup kept me OUT of trying ADXS, which then got clobbered.
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