Woke up today at 6 am to catch the markets, had some stocks in mind to buy. But since I am under pattern day trader rule I can only make 3 trades a week, which is pretty fucking annoying. Anyways bought 1000 shares of OCZ on the ramp up, miscalculated my protofilio, missed a great buy at .48~ or so and ended up buying at .525. Set a 7% trailing stop loss and went back to sleep. Would've stayed up, and would've loved to short some other stocks (OXBT, PGLO), but pattern day trader and my broker don't let me short penny stocks easily.
Made around 10% of OCZ, woke up later at artound 11 am, stock surged past .6, I tighented my trailing stop loss to 5%, Unforuntately my trailing stop loss was a bit to wide by this time, I shouldve just put a stop loss at .595~ or something like that instead. Missed a great selling opprotunity in lower .6s or .59 and my trailing stop loss ended up selling at a little under .58 (like .576) I still made money on the trade, but after fees, not much.
Observations: OXGN was a huge buy today, defintely the winner. OXBT, as expected, surged early on in the day to around 11 then was a prime candiate. Most times these runner up explode the same day before diving hard. 2 dollars in 30 minutes after 3-5 trading days of exesive gains made OXBT an obviosu short. Regardless one is here to play the odds, and yesterday one could've said the same thing. That is why I think level 2 watching is very important. You wanna short into fast conslusive crashed where constant stop losses are being triggered. Best to pay attention to level, find where volume is exhausted, wait for tapering on, set a short, a VERY conservative stop loss, and then keep paying attention. I dont have much, if any experience shorting so I'm going to have to try.
I am considering opening an overseas broker to bypass this dumb pattern day trader rule, but have to talk to accountant and see whats up with that.
some stock picks for today which I had in mind but why I didnt buy:
NWTR was on top of my list. Its being newslettered hard , definitely a candiate for buying and seeing what happens, of course with a tight stop loss. But I didnt see it move fast enough at market entry, and since I can only do so many trades a day, I wanna catch early moves, set tight stop losses and scalp a quick 10-20% .
OXGN came from left field, wasn't on my field of vision at all.
VELT was a my trade yesterday, I made almost nothing off it because I was too scared and stupid and didnt set a stop-loss and just sold as soon as I made a small profit. Also I set a very conservative limit buy order that didnt get filled, and then stock rebounded. Again I didnt lose money, but it was dumb. Lastly, I found the company is going completely bankrupt, and that just itched me the wrong way. Even though I know these companies all kind of suck and im just taking advantage of expectations or craziness, its hard to see why this would be a buy in any sense. Might be good short, but its under 20 cents, so be very weary. It will be worth 0 soon enough, all that matters is whether or not u get called in before it hits rock bottom.
Lessons from today:
1. I need another brokerage account. This at the moment is my biggest achilles heel. I currently use schwab, and they are really good for research/investing or making large market moves (I guess?) but they suck for penny stocks. Like really bad. They dont have any shares to short, okayish routing, I don't even know if i have direct access, I don't think I do. The platform they use (street smart edge) sucks on mac, like really bad, and even on windows its slow and unwieldy. Its really annoying managing multiple charts and containing in formation all in one screen. And the charting software is REALLY bad. Still schwab isn't that bad. The main thing is 1. I cant short, and 2. Pattern day trader rule sucks HARD.
2. I gotta buy quicker. Its always easy to say this in hindsight. I don't know exactly how I'm going to do this in real life or apply it. But i got to be quicker, take some risks early on, just set some tight stop losses and hope for the best. OCZ, VELT, OXGN etc all went crazy after a very small tapering early on. But I was slow, and slowness costed me an extra 5-10%
3. You gotta take into account marginal revenue versus marginal cost in trades. What I mean is fees are very important and need to be constatnly taken into account. on schwab a trade is 9 dollars each way so 18 dollars total. so that means unless i make at least 1800 a trade I lose more than 1% of that to fees. which means I would need a 10% gain on 18k to make it so my marginal cost is less than 1% of marginal revenue. if I buy 1000$ worth of a stock, it goes up 10% and I sell I lose 18% to fees.... Need to keep growing my account to avoid this and learning more.
4. there is no way for me to wake up at 6 and be energetic. I just need to stay up all night I guess. At the same time it doesnt really matter because I cant intraday trade.
In other news:
I've been flipping bitcoins, they were wildly above there 20 period 2- and 4 hr chart moving averages (which imo are better for bitcoin markets because they are open 24/7 and global) i sold some at around 261 expecting them to crash a bit. Regardless I figured that worst case scenario they go up a bit, and i lose, but can buy back in and best case scenario, they crash after i sell. I turned out to be right-ish. They went up like 3-6 dollars. but couldve gone down heavily (they are almost parabolic) I don't think its worth rebuying yet though, there are some HUGE walls (but they could be fake) and also they have gone up a lot already. I expect them to ethier go sideways, go up a tiny bit, or crash, but no where near as heavily as in april.
My other ways of money making are getting weaker by the day I feel, there are still some angles to take. I might be able to make around 10k~ more by the end of the year if I hustle a bit, but it would probably require a little bit of luck.
Left to do:
need to research some trades for tommorow, analyze more chart pattern. Specifically I want to see how charts act early in market hours, how likely they are to resurge back up, why some stock like OXBT VISN go up for days, yet others like CERE and OPTT surge one day and crash. Obviously the reaosons why they went up have to differ or some sort of super-theme issues have to be apparent.
exercise/learning/homework all needs to be taken care of as well