PHIL Trade on Aug 19, 2022 18:47 from newjules85: Tradervue User Stock Trades.

Caught PHIL on the scanner later in the day on Friday. I remembered that this ticker had had big runs in the past. So I knew it was a former runner, was known for multi-day runs, was spiking on news on a Friday where chatter over the weekend would likely result in a gap up on Monday morning. I sized in large in the last 30 minutes of trading on Friday. Over the weekend, social media was quite active discussing the ticker and news. A lot of people were concerned about the 29 billion share float. I considered the following in how I approached entering the trade:
(1)former runner
(2)former multi-day runner
(3)news catalyst
(4)the chart showed that when volume was unusually high for this ticker, most of the time the ticker gapped up the following trading day. The likelihood was higher when the move occurred just prior to the weekend.
(5)continuation of the move often occurred the next trading day despite having a high RSI
(6)PHIL's SS is at least in part bloated because a note holder (Crown Bridge) had converted a significant number of shares. Crown Bridge recently settled a civil suit brought by the SEC for failure to register as a securities dealer and is being forced within 30 days to cancel billions of shares in PHIL's float.

The following is how I approached where to sell:
Depending on the gap, previous experience has shown that a lot of the time there is a retest of the green/red level from the gap open price. If that green/red level holds, the stock will generally remain green and bounce accordingly. This rationale led me to think I should sell at the open at the gap up price and look for a potential re-entry. I was expecting a gap range of .0025-.003.

But 15 minutes before the opening bell, PHIL released a PR about another acquisition which froze me. I was not sure how I should adjust my expectations of where to sell and how this would impact the potential move off the open. I decided that I would be patience and keep a close eye on L2 for the turn. However the open was very choppy and the initial turn appeared to show itself fairly early. But I thought it might be a fake turn given the PR that just came out. So I didn't bite. However, the price topped at .0026 and began a steady sell off lower. The bid support was shaky and the ASK kept getting taken out only to be replenished over and over again. It was very frustrating. I thought to sell at .0022 (entry was .0019) and put in an limit order but the price fell below it and it did not go through. I cancelled it and decided to stalk the .0020 support level as it was over 100 million. The shares at .0021 and .0022 kept getting eaten up and they kept getting refilled which led me to conclude that this must be heavy dilution. The volume begin to slow down significantly as well. So as soon as the first heavy print at the bid support at .0020 went through, I sent my sell order through to exit.

Takeaways:
I could have done better in profit for this trade. Once the L2 began to turn I should have taken what it was showing me. The fact that the turn showed itself very early after open despite another big PR should have been a warning sign to me that something was not correct. The constant refilling of shares at .0021-.0022 after the ASK was smashed with buy orders should also have been a sign that dilution would not allow this to go higher and that it was time to exit the trade.

Improvement:
Work on developing better reflexes to the L2 and tape when deciding when to pull the trigger and exit the trade.

If the stock fakes you out and continues higher, you can always wait for a pull back to re-enter the trade if a set-up is present. But take the gap up profit on strength because the majority of the time, the stock will not gap and run, it will gap and pullback prior to running higher IF it continues higher.

Trust your instincts

Limit social media and consider exiting the trade if developing urge to check social media for confirmation bias