Well as I write this post, $EFUT stock has rocketed from $8 to $20+ just after the normal market hours! It’s like $KBIO all over again, only different circumstances!
Did you know that you can still trade most stocks for an extra four hours after the market close? I bet you didn’t did you! That’s ok, because when I first started to learn about penny stocks and the stock market in general I too did not know about this.
So for the American markets you can trade pre market and after hours (7am-9:30am & 4pm-8pm EST).
The downside to this though is that there is more risk involved as there is less liquidity (Volume) to that of normal trading hours. Make sure that the broker you choose allows trading at pre market and after market hours.
Anyhooooows with that useful bit of information for those that did not know that, lets crack on with how the week has gone so far as it’s only Wednesday!
My First Paper Trade With $257 Profits!
Although I’ve been writing and documenting everything that I’ve learnt along the way and explaining my possible trades had I been trading for reel, it suddenly occurred to me that I needed to get to grips with my new brokerage account and start trading with virtual money.
I should have thought of it sooner to paper trade, so that I would be trading with the strategies I’ve been taught by Timothy Sykes and get a much better idea of how things go.
Like I’ve said before I’m learning every day and I’m not here to just share my successes, but my failures and learning curves as well. I think that if you can’t admit to being wrong then you haven’t really learnt anything.
So my first paper trade was that of $AEZS on Tuesday 24th November and yes I know it’s NOT a penny stock, but I was prepared for the action due to the previous day, had a plan, and I executed it for $257 Profit!
With the strong amount of buyers at the market open I was already waiting ready to trade due to it’s previous day’s reaction to the market.
As it turns out my entry was at $13.90 and I could/should have waited for the dip buy at the $13 area, which is why I entered a second trade at $13.50 and it got executed at $12.92 and bounced as far as $15.70 for the High Of The Day.
I do admit that this was definitely NOT the best trade, but as this was my first trade with virtual money, I learnt a lot and overall I am pleased with how I traded it.
The number one lesson I learnt was to be more patient and wait for a dip buy into support. I was confident that it would bounce at the $13 area as there was strength here, but my thinking is irrelevant and I must trade more on what I see and not what I think!
Best of all though I put in my sell order of 400 shares early at $14.10 which got executed at $14.12 and would have banked me $257 had it been reel money! Yes I exited too early, but the objective is to take the meat of the move and not predict where the top will be.
My original plan was to exit at the $15 area due to past resistance just above that level, but as I bought another 200 shares at $12.90 I did not need to risk going that high.
Soon after it hit $15.70, $AEZS slipped all the way down to $7.68 at the market close.
I should have possibly exited my first trade after it dropped, but because it held support and the price action was fierce, I was ok to let it run with a stop loss of $12.50 should things go further south!
I am happy with this trade as I was prepared for it, and the best lesson I learnt was to be more patient and wait for the dip buy.
My Second Paper Trade
My second paper trade was on the Wednesday 25th November (Today) and all though I did not make any virtual money on it, it was a good trade none the less and I still broke even.
Today I had NOT done my homework the night before as I was pre-occupied with house hunting and sorting other things out in my life.
Starting ANY trading day with a lack of preparation is probably the worst thing you can do in the stock market game, as it then becomes a guessing and chasing game where you will be one step behind the market action.
Having said that I was lucky enough to be in the profitly chat room, as one trader alerted me of $MCUR.
I put $MCUR up on my level 2 screen to see what was going on, and at first the price action was ok, but nothing too crazy.
It soon dropped down to $1.90 and hovered around there for a couple of minutes or so. A few seconds later price action started to rise and low and behold the price went up to $2.40 as the days high.
Unfortunately I hesitated on this trade as I did not like the big red candle with the tall wick just before it dropped to the $1.90 area. Of course I should have entered my trade and gone with the price action, but I am happy with why I didn’t enter a trade even though I was wrong.
My thesis was right on the price action, but wrong about the big red candle, and that’s ok as I had my opinion on it and stuck to my plan.
I did get into a trade at the second dip as you can see in the chart above, but as the buyers started to slow down and fade, the action started to fade quite quickly also. So I fiercely entered my selling bid, which got executed at $2.18, so I broke even in the end and I was right about getting out.
If I had done my homework the night before, I would have seen that there’s resistance at $2.40 the previous day and not entered a trade at $2.18 or at all after it topped $2.40.
The only good trade I could have done was to short it after it hit $2.40, so some more good knowledge gained for the future when I short stocks.
With technical resistance or support and a candlestick showing a long wick, this can be a good signal of a reversal happening.
So lesson learnt is to never trade without doing your homework and being prepared first.
~The Key Is To Trade With A plan And NOT To Make X Amount Of Money!~
So so far I’ve made 2 trades and I’ve made some good calls, but I have got to be more prepared by studying my watch list the night before and news on other possible stocks too. It is far too dangerous to go into a trading day looking to make good trades when your not prepared. So lesson learnt.
One trade in particular that I missed was that of $GENE, which is on my watch list. Had I done my homework the night before I would have been more prepared and potentially been able to bank on it.
What Can I say about GENE?!
She’s a lovely little stock is our $GENE and it was silly of me to have missed her action!
So these 3 stocks are the 3 main stocks that I’ve learnt from this week so far, but there is also that of $VLTC which I missed, but I didn’t have it on my list or know about it so it’s ok.
I completely underestimated $VLTC as there was no news or catalyst to make it spike the way it did, other than manipulation which does not make it tradable for me! Never the less, here is the chart and what it did during the day of the 24th November and after market hours as well.
With sooooo many break outs on this stock, it was almost as if it was teasing you to buy it! If I had focused more on this stock I might have gotten a better picture on it and the price action as well, but because there was no catalyst I focused on other stocks instead! The one note I can take away from this though is the consistent wave of volume throughout the day which makes it tradable.
Oh yeah this is what $VLTC looked like after market hours!…
Dip Buying Is The Key!
With so many potential trades this week I’ve learnt lots, and “Dip Buying” is definitely what I’ve got to be patient for. Look at these Two dip buying patterns I’ve marked out below…
Main Lessons Learnt
- You Must Do your Homework The Night Before You Trade
- Be Patient and Wait for the Dip Buy
- Trade Price action
- Cut Losses quickly (Which I did on my 2nd trade) 🙂
There’s some great News
To finish this post off, there’s some great news….My brokerage account has finalllllllllllly gone into active mode and is ready to transfer money into and commence trading, Hooorah! So next week should be when I put reel money on the line, and lets see how I perform, cus this space ship is about to launch! 🙂
Oh and this is what $EFUT looked like after market hours!!!
So the American Market is closed tomorrow as it is Thanks Giving Time for them, but it will reopen on Friday as normal and close at 1pm EST on Friday also. So Happy Thanks Giving to everyone that’s out there, you too bro 🙂
Remember the whole point of why I’m writing all this is to learn and improve all the time, so that I will become a very Fucking good consistent trader! I still have a lot to learn and perfect that’s for sure, but I really do hope that when you read this, you understand that I am NOT perfect and I will and do make mistakes, but best of all I’m willing to learn to get better at it!…Plus I hope I inspire you to want to learn too 🙂
Also remember that it’s ok to miss trades as it’s better to lose opportunities than lose your capital.
~It’s better to lose opportunities than lose your capital when trading!~
So in the mean time I shall study some more and prepare for Friday and enjoy Life 😉 Gobble gobble gobble!…..