Today was both a learning experience and an annoyance at the same. I was able to sell the gap in the AM averaging around 1.2005 for LUXR. It didn't gap as big as I wanted to but it did gap. I was glad I averaged in on this trade or my profits wouldn't have been as big. The bad for LUXR is that the promo seems to be over already. It suffered a 21% drop after the 1st ten minutes of trading till the end of day. It also gave up all of the gains for the past two days along with most of the volume coming out from the stock. I am taking this stock off of my watch and gap list as it seems to be done unless things change for the better tomorrow. It was cool to see a plan I had since Monday come together for a success!
Now for the shame I brought on myself today. I pulled a trade like a complete newb. I did get a learning experience out of it though which is always a good thing. If you are going to lose, you mine as we'll learn something from it, right? After telling myself I wasn't going to play RSRS, I did. LUXR was off of my gap list and that was the next best thing that I saw. This is where things get ugly! I do (and from now on) two things when getting into a gap play. One option (if the stock looks good like LUXR did) is to buy 30-20 minutes before close to ketch more gains on an upward trend. Then do 1 last buy for another buy for half of my shares right before close for a nice average in at a price lower then the close. I love to do these when it works since it lowers your risk for losing. My 2nd options is to buy right before close at 4:57-58. That way if any EOD dips happen you can get in at a lower price or choose not to play at all. Today I took a gamble and bought 10 minutes before close. Right after I bought RSRS experienced a dip all the way to 1.22 from my entry of 1.27. Never again will I buy around that time at close. What I should have done was averaged in at the bottom to increase my chances of getting a profit out of it. However, I didn't. I made another huge mistake that cost me. I figured I would leave it and just sell the gap and hope to break even. Well, I set my sell at the ask with 30 seconds to go and I get filled at 1.24! Not only did I lose some money, but also a day trade! I was still up for the day but not as much as I should have been.
From now on during a gap play I will set my sell order right after the market closes. That way I can edit the trade in the AM if things don't look to good. I should still be able to get filled right away. Another rule I am setting for myself is having all resistance and support in mind before entering a trade. I had no idea where that stock was going once it started dropping. No stop loss, no support levels, nothing! Next time before I even enter I will make sure I have all support/resistance levels identified so that I can react better when something like that happen again. The importance of having a stop loss!
Here is what I am watching tomorrow and my thoughts on some of these stocks.
SNPK:
It happened today, what I have been waiting for. A huge 50% drop after 11. There are some interesting things to note about this drop that makes me want to continue to watch it. One being that WDCO walked this stock down again. Two being that the bounces weren't that big. They were nice bounces but they weren't huge compared to previous APS picks and previous bounces that happened on SNPK. Another thing to note is the volume. While a large amount of volume came out, it didn't seem enough as if they were going to dump their shares out. It did drop a lot so I will just continue to watch this stock.
SEFE:
This stock had a lot of movment today both up and down and closed just about flat with a gain of 2%. I would like to try and play a bounce on this stock so I will mark key support levels to watch for.
SEFE Resistance:
1.59
SEFE Support:
1.55
1.53
1.52
1.50**
1.47
1.45
I will keep an eye out for morning dip and try and play the bounce. I most likely will not play this stock again for gaps unless it really starts to move. If you can play the bounce I feel it is more profitable then playing the gaps.
RSRS:
I am mapping you and coming for you, this time for blood! I will not allow myself to make the same mistake twice. I will have a plan next time I play this stock. This stock is still in play as long as it doesn't turn out to be a one day promo. I want to see how this stock gaps and reacts tomorrow. My options are to buy the dips and possibly take it for gap.
RSRS Resistance:
1.31
1.32 (see if this will be a good break out buy)
RSRS Support:
1.27
1.25
1.22
1.20
1.17
Again I will try and buy dips on this stock but 1st I will want to see how this stock trades.
That's all I am taking a look at for tomorrow. Keeping it small while I learn. Tomorrow I will try and make way better trades and decisions then I did today and will continue not only to learn but to also learn from my mistakes.
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