I decided to do a mid day update since a lot has happened in the 1st couple of hours in the trading day. It turn's out my "mistake" yesterday of selling RSRS before close proved to be in my benefit. Not only did RSRS look bad before the close, it also looked bad pre market on the level two. If I am ever in a gap that looks anything like RSRS did today, I know to put my sell order in below the bid right away to make sure that I get out. I am now happy with my small loss that I took yesterday.
This also shows what separates bad traders (or ones just learning) from good traders. A good trader would have went in early when RSRS was alerted, made their profit, even play it one more time and then proceed to walk away from the stock and never look back. "Take the money and run!" A bad or inexperienced trader would see all the hype around a stock like this, wait and then jump in. Then, Bam! That is what the promoters are looking for. People like that to dump their shares onto. I should have stuck with my initial plan to not even play that pick once I missed the initial play on it. I mostly kept to that plan as I didn't try to swing or day trade this stock. Rather I was just going to use it as a gap play. This was definitely a great learning experience and was glad that I was on the other side of this stock and not in.
I did feel horrible for people in the chat while watching this. So much so that I missed my dip play on SEFE that I wanted to do. Oh man would that have been a sweet play if I was able to ketch it. Hit off of my 1.53 support twice to then have a nice run up! I am seeing these plays ahead of time now all I have to do is actually execute it! I may take this stock for gap and try and play the dip on it tomorrow. More about that below.
Here is my opinion on the three stocks listed below.
RSRS:
In my opinion this stock is done, I will not be touching this stock again, period. All gains were given up and a lot of volume came out of this stock. The fact that so many people had a really hard time getting out makes me not even want to touch this thing. Also if you look at the volume it is pretty much dried up at the moment. Some pretty big things would have to happen for me to touch it.
This stock would have to break 1.06 or me to even give this stock a second look. So for the most part this stock is off of my list and in my opinion done.
LUXR:
This stock had another morning in a downward movement. It has started to make an uptrend but on low volume. I am only keeping my eye on this stock and wouldn't recommend playing it till things start to turn around more for it.
SEFE:
Had a nice gap up in the AM but then closed the gap 2 minutes after. This stock hit off of my support level of 1.53 two times in the morning. If you were able to buy around 1.53-1.54 you got to see some nice gains. Not after the 1st hit but after the second test of 1.53. If you did buy at the 1st hit you would have been fine as long as you set yourself a stop loss. You would have been able to hold the 2nd dip and then enjoy those nice gains. 1.50 would have been my stop loss.
I will see how this stock closes, if it has a nice close I may consider this for a gap play. I will also look for another dip as an entry point.
That's my update so far for today. If I have the time I will write another blog tonight about my plans for tomorrow. Hope none of you were caught in the RSRS drop!
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