The trade set up for the trade I did today, and am using as an example is a 123 reaction after a buying climax. The only way to ground yourself, survive and excel in markets is to understand the exact specific trade SETUP you are looking to get into. If you can’t identify it, you might be better off to stay out. I had to learn the hard way about how truly important that is. Why is it important? Because this business is about risk, probabilities, entries, exits. That’s it. Everything else is noise.
I imagine it must be quite frustrating for novice traders to really learn how to trade with all the scammers all over the internet, doing slick videos and promising a life of great wealth. But are these guys really trading? We realize we don’t offer the bells and whistles and the glamour of driving a Maserati or Ferrari, but we are true traders, using great set ups to make our livings and you too can learn these set ups, learn to trade well, and have a great life.
So today’s example was in penny stock PZRX, another little crappy stock headed for the de-listment line, no doubt. The full trade was laid out in the videos below, from almost the very start to the beginning of my exit plan. This stuff is time-consuming. In video #1 below, I was long, buys in the .43s. The stock was sitting right there around my entry point during the video, and I discussed my plan to sell if it “spiked thru .50”. I missed the first chance, but sold most of it on the second push into .50. I had my plan and stuck to it. In the second video, I again reiterated my plan to sell the stock into resistance. Over at Stocktwits (I go there to view sentiment) the wild bullishness was rampant. This stock is a piece of crap, it’s not OSTK.
Regarding OSTK, I initially got long and did the video with OSTK on 10/25. And amid all of the ignorant comments about BTC circulating around, we love the crypto stocks. I have discussed OSTK dozens of times, and again this morning:
“With AMZN, BABA, the stock market (gold down the road), for years the pontificators have been spectacularly wrong. The whole time I’ve been long OSTK, I’ve read numerous stories about how the stock (and BTC) are worthless, like this trash. Twice, I’ve already pulled some profits out of OSTK, and bought back into reactions. So while the genius who wrote the article is sitting on his rear and pontificating, I’ve been trading it, profiting, and think it has a good future. We’ll see. In other words, I’m trading (opportunity) – and giving strong uptrends “plenty of room“, there will be a post about that soon.”
Also discussed is CANN, SQ, RIOT, IMMU, DVAX, INSM. Every one of those I’ve traded or I am long, and they each have videos attached to those trades. And also discussed is PIXY (bearish).
Looking at SQ…Was contemplating buying that 123 push down and spring (or second retest) on the 14th but it seemed to be moving slow, is that something to be watching for in judging the potential to the upside? Why hasn’t it moved up with the other crypto’s, appears to be rolling over in a third wave down?
Yes it’s lagging the sector. And my attention position-wise is to focus on the relative strength leaders. I do believe the 11/28 is the beginning of reaccum, but we know that the preliminary support is always followed by the automatic rally and then lower (usually several) lows. The whole process, assuming it is reaccum, can be traded in and out. But again, the others have held better. I’m still waiting for below 34.75. So yes, the lagging (not as bouncy) is certainly something to watch for and observe. If wary, 3 choices. Stay out of that one, stay with the leaders (if they haven’t gotten away) trade small, trade short-term. In other words, cut back somehow.
Looks like your nemesis Karanzer shorted OSTK too soon but it must be getting close to your P&F target by now?
The full multi-phase count encompasses all of the accu, plus reaccum, like with any point count. And they add up into phases. But we need to be as conservative as possible, so phase one (most recent, and the “upside part”) has a count, amazingly, of 14 + 17×3, so to 65. Pretty amazing how that works. We had the first bigger top at 65.70, and I believe now we’re working on phase 2. The point count at 42 was 7×3, so to 65 again. It doesn’t mean you can’t have big selloffs to build more count. There was a big SOS today, but I’m aware of the run it’s had. Just trying to give it room.