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Sep 2, 2021 05:47

I have now decided to document all my trade reviews and post them on twitter. The reason behind this is to help other beginners learn.

If I’d had something like this 9 months ago, it would defiantly help me improve quicker and cut down my learning curve. I also benefit from this myself, by putting more effort and detail into doing my reviews will help speed up my knowledge.

I live in Australia so participating in the US market can be slightly difficult due to the time difference. What suits my lifestyle is to trade in the last 30 minutes of the US close, from 3:30pm to 4pm, that is 5:30am to 6am Sydney time. As soon as my orders are in, I head off to work.
This is how I will continue until I do become a consistently profitable trader and trade full time.

I have simplified my approach as much as possible and I am trading just one sector Biotechnology stocks. As soon as I have mastered this sector, I will add another one. The benefits of doing this is, when I scan there isn’t too many stocks to pick from and it’s easier to focus on one hot sector.

Let’s start:
Out of 75 Biotec stocks, this is the one that I picked.
It was only up 6% for the day, so it had only just broken out. It’s also a low-priced stock and they tend to make explosive moves, which will help grow my small account.
I did the same as I do for every breakout I used stockbees 2LYNCH criteria. This criteria is like a buying guide, it tells you YES to buy or NO do not buy.

2 The stock was not up 2 days in a row.

L. The stock showed good linearity over the last 6 months

Y. It is a young trend, has hardly any breakouts and is down trending

N. It is in a very narrow range the day before the breakout

C. Consolidation quality is good, has 3 really tight days before the breakout

H. it closed near its heigh of day.

My stop was very tight. As I’m entering at the end of the day, I was able to enter a 1% stop, I know it can't go down anymore. Yes, this is a tight stop for a 4% breakout, but it's either going to work how it should and go up or it's going to fail, and I get stopped out. The next day it was up 2% in the pre-market, so I moved my stop up to break even. I have taken all my risk out and can't lose anything on the trade. I went to sleep and woke up to getting stopped out.
Even if I would have left my stop loss at 1%, I would have still been stopped out.

Even though I got stopped out I still feel good about the trade. I got to learn from it without losing any money.

What did I learn from this trade?

I learned quite a bit. This is the first trade of refining my new process, entering at end of the day and just trading the Biotec sector. My main take away is I can clearly see that It works, which gives me a lot of confidence to keep moving forward with it. I just need to keep making slight adjustments for this to work.

What would I do to improve this trade?

Looking back, I should of taken some of the profits in pre-market. At minimum taken off 30% and let the rest ride. I know for the future if it’s doing well in the pre-market, take a little off its only going to benefit me.

What did I do well in this trade?

Moving my stop up, by doing this I removed all risk from my trade and I stopped any losses from occurring.

Execution detail:

Date/time Symbol Side Price Position
2021-09-02 05:47:30 UBX buy $3.387 long
2021-09-03 03:34:15 UBX sell $3.403 0


Gravatar DMacTrades
2021-09-02 17:28:42

I like that you are really planning your trades out and collecting data. Are you still in the position? I think so as it is showing as open on your journal entry.

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