Shared by
Leon64
Target: 6+ & 4.20s & $3.85 | 4.27:1 & 2.75:1 & 1.5:1 R:r
Risk: $350 vs. $3.90 & $350 vs. $3.40 & $500 vs $3.40
Setup: The first setup was a flag after a triple tap breakout. The second setup was a 5 minute breakout after it comes out of a triple tap. The third setup was a 2WickTrade preparation for $3.70 breakout. I think it had a low chance of working.
Cons:
~ The first setup was played on a 2 minute timeframe. I have to remember that I should have a different exit/target strategies when playing on shorter timeframes. Essentially on these types of stocks, I must protect any gains and immediately get out on weakness. Also, expect shorter targets.
~ I didn't want to trade this stock cause I thought there was manipulation, but I decided to go once more after a it came out of a triple tap. It setup on a 5 minute and of course, I wasn't ready to bail on weakness. I was unprepared and lost.
~ The third setup was a preparation entry for a triple tap @ 3.70. I was emotional and risked way too much here even tho I had a feeling it would work. I just couldn't hold on to it and dumped it before it worked. I should have realized that this trade wasn't worth it.
~ This trade was a emotional mess for me. Luckily I didn't lose more, but it wasn't good either cause I let me emotions get to my trading. I need to adjust my strategy for these types of stocks to protect my gains immediately especially after the initial move.
Note: I must forgive myself and live to fight another day.
Note: I was told not to play these type of stocks and I think my friend is right about that.
Old Blog:
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-10-14 11:19:00 | MDRR | buy | $4.290 | long |
| 2020-10-14 11:19:00 | MDRR | buy | $4.290 | long |
| 2020-10-14 11:19:00 | MDRR | buy | $4.290 | long |
| 2020-10-14 11:26:00 | MDRR | sell | $3.940 | long |
| 2020-10-14 11:26:00 | MDRR | sell | $3.900 | 0 |
| 2020-10-14 12:42:00 | MDRR | buy | $3.650 | long |
| 2020-10-14 12:47:00 | MDRR | sell | $3.470 | long |
| 2020-10-14 12:47:00 | MDRR | sell | $3.460 | 0 |
| 2020-10-14 13:24:00 | MDRR | buy | $3.580 | long |
| 2020-10-14 13:24:00 | MDRR | buy | $3.580 | long |
| 2020-10-14 13:24:00 | MDRR | buy | $3.580 | long |
| 2020-10-14 13:24:00 | MDRR | buy | $3.580 | long |
| 2020-10-14 13:33:00 | MDRR | sell | $3.546 | 0 |
Comments
Leon64
@egorgulu,
I was looking back at the chart and noticed a 1m play @ 09:33. I had a feeling that this stock could squeeze given its 3.20m float, but was there any other indications that could have provided a bigger hint? There was no news on that day. Do you have any tips for how to enter it afterwards? Maybe using some kind of momentum indicators or MA?
Looking forward to a response.
ErdemTheMan
Hey @Leon64,
Its been my experience that a $1 stock making a 6x move on 2800x volume without any news or PR is a pump and dump, meaning certain people pump it to jump to 6x where they sell at the top and let it go down back to $1 where they cover. That 1M play is probably them taking their profit where the play is already done. If you want to scalp it on the front end, you need to be there at 09:30 and scalp it during that 1M move. That's what I have seen so far, IMO. Try to resist the urge to get in the action after the play is done, aka FOMO trading.
Some times, best trade is the one that you didn't take so you prevent a red day. Not loosing is part of winning.
Good luck. Reach out if you have any questions.
Russthemus
What ws strange about this is that flush you got caught in. Looking back at the time in sales we peaked at 4.73 $ then stalled pulled back and ran some tape at the 4.6s but there was this quick selling that dropped to 4.1$ Then the tape shows back up to 4.6s but the candle never reflected that?! strange. then the panic started. I went back and looked at this, this weekend due to me as well being in that .60$ flush.
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I think in a stock with price action like this, you should be in the play way earlier then 11:00 hrs. You should have been ready to act around 09:15 and be done with it around 10:00... IMO