A trader in haste will certainly run into trouble. This is because entering a trade with either a premature plan or simply basing on a certain kind of spur of the moment, a trader is bound to commit mistake.
Still not done in reading Minervini's text, I was in a hurry to immediately test in actual trade the insights I gleaned. Somehow, I saw $PHES both with its turnaround story and technical indicator passing my criteria. I bought @ 0.55 and immediately it went up. I told myself, "This is it!" I was so glad that price action immediately confirmed my trade only to see around 2PM the stock crashing. As it hits my cut loss @ 0.51, I immediately closed the trade without rationalization. I think if there is one thing worth rejoicing in reading Minervini, this is it. It finally dawned on me that the discipline of cutting loss is a must not only in surviving, but also in thriving in this field.
And so I realized that familiarity with a stock is also important. I started observing $PHES and analyzing its price history. I saw recurring pattern.
As for my observation, last 06 September, the price was unchanged and tight, and volume is drying up. So I thought that the run is near only to see the following day its volume doubled in a down day. That to me is considered alarming. My suspicion was confirmed for in 13 September the institutions have returned not to buy but to sell. Trade value that day was 5.3x bigger. Will the stock visit its 200 MA @ 0.40?
As I analyzed the price history of this stock, I observe that for three times, the stock only rallies when its price is tight and its volume is less than 1M shares.
Still hesitant to enter @ 0.44. I might be placing my capital for a longer holding period. I decided to simply wait for institutional buyers to return.
Still not done in reading Minervini's text, I was in a hurry to immediately test in actual trade the insights I gleaned. Somehow, I saw $PHES both with its turnaround story and technical indicator passing my criteria. I bought @ 0.55 and immediately it went up. I told myself, "This is it!" I was so glad that price action immediately confirmed my trade only to see around 2PM the stock crashing. As it hits my cut loss @ 0.51, I immediately closed the trade without rationalization. I think if there is one thing worth rejoicing in reading Minervini, this is it. It finally dawned on me that the discipline of cutting loss is a must not only in surviving, but also in thriving in this field.
And so I realized that familiarity with a stock is also important. I started observing $PHES and analyzing its price history. I saw recurring pattern.
As for my observation, last 06 September, the price was unchanged and tight, and volume is drying up. So I thought that the run is near only to see the following day its volume doubled in a down day. That to me is considered alarming. My suspicion was confirmed for in 13 September the institutions have returned not to buy but to sell. Trade value that day was 5.3x bigger. Will the stock visit its 200 MA @ 0.40?
As I analyzed the price history of this stock, I observe that for three times, the stock only rallies when its price is tight and its volume is less than 1M shares.
Still hesitant to enter @ 0.44. I might be placing my capital for a longer holding period. I decided to simply wait for institutional buyers to return.
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