ABIO Trade on May 1, 2019 13:06 from bnf: Tradervue User Stock Trades.

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ABIO - 1000 shares long at 7.27 and sold all at 7.45

My Plan:

I discovered ABIO because people in my chatroom told me that its having a new high. I quickly looked at a chart and volume and volume was exploding and knew that it could go bull but worried that it could sell off immediately. It had quick surge earlier in the day and it sold off and it was in consolidation so I thought as long as it doesn't sell off heavily during consolidation, sellers aren't in panic or in desperation. They want to see where it's going. When the volume exploded, I got in and thought let's see where it's gonna go.

Risk Management:

I could not read the pattern and psychology so it was unpredictable for me
I thought people would massively short sell since it surged from 7 to 7.27 very quickly.
so I decided to lock in profits at 7.45 as it went to 7.70 and it was falling very quickly to 7.45 and I wanted to take profit before it falls below my entry.

I could have waited more until it reaches my entry point because when I sold at 7.45, stock went higher up to 8,9 and finally passed 10. I know that this stock will be bull for a while.I didn't buy it over time and just went all in (1000 shares) at 7.27 impulsively since I saw the volume and abrupt surge coming in. There is no right or wrong answer but it's another strategy to buy 500 shares at 7.27, 200 shares at 7.30 and 300 shares at 7.35 for example, same with selling. Stock was surging up to 7.70 and it quickly dropped to 7.45 level and I felt it was gonna drop more and eventually hit my stop so I just decided to lock my profit so at least I have a profit.

Emotion:

Unlike trading with paper money, there were massive hope and fear simultaneously during the trade. The hope was since I saw the surge with volume during consolidation, it's gonna go bull now and it's opportunity. When I got in, it was a good entry yet I was worried that sellers would massively sell and short sellers could follow after that since it was already HOD. Stock went up 7.70 and fall very quickly to 7.45 so I had a fear that my potential profits are decreasing and eventually could hit my stop so I just sold it all. However, after I sold it all, it spiked up and passed 8,9 and eventually 10 and I felt like I was missing out big time. I realized I could add more at 7.45 and considered that as a pull back but no one knows if it's pull back or if it's downhill from then on and short sellers piling in. It was tricky to figure out and I didn't understand this kind of pattern so I just got out

Mistake:
exit too early, thought pull back was heavy bear sign, played out of fear, no solid trade plan, so buying or selling over time,

Solution:

I was obviously focused on capital preservation but I could have let the winners run and be more patient on this, don't sell on pull back and sell when the pull back lost in the battle

Why the trade was made:

people in my chatroom notified, high volume, 5 minute high, already high of the day

When I made the trade:
**
as soon as I saw high volume and it broke 5 minute high, I got in. I also saw the speed of change in level 2 and the energy of buyers and sellers. I tried to feel the volume, price action, rate of change and energy of buyers and sellers

Weakness of the trade**:
**
sold too early, sold during pull back, sold before it went below entry level

Strength of the trade:**
**
Opportunity spotted quickly before massive bull happened, thanks to people in the chatroom
who use real-time AI trade ideas software

My thoughts on result:**

Let the winners run next time, as long as my entries are good when the stock is relatively cheap, let the winners run especially when you see massive volume like this

Self- Analysis:
**

It's a great lesson and good practice so when I see similar pattern in the future or similar situation, I get refer to this experience and make a better decision

Market Observation:**

SPY, DJIA, S&P 500 was in a pretty good situation and so was futures. Political situation was stable and fed didn't raise the interest rate, it remained still. Trade war with China reached a conclusion, Trump had small trade war with Europe, yet Euro market was bull

Other:

I am proud of myself writing such a detailed journey like this. I will learn my mistake from trade journal and try to become a better trader, eliminate emotions, be patient and only play what I understand


Execution detail:

Date/time Symbol Side Price Position
2019-05-01 13:06:27 ABIO buy $7.270 long
2019-05-01 13:08:14 ABIO sell $7.450 0


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