Day Trading Journal for Robbie W

[Robbie Williams 12]

Thursday 22nd February | AIMT Pre-market flat top breakout

 

I am still in the simulator and only have one monitor so before market open I need to decide which single stock in play I am going to watch at the open. On the morning of Thursday February 22nd I saw that AIMT had made a flat top bull flag in the pre-market 1 minute chart and on the 5 minute chart was showing higher higher and higher lows.

 

At market open, the first 1 minute candle opened bullish and continued the flat top flag (denoted by the pink line I've drawn on the 1 minute chart). I went long 200 shares at $28.14 at 09:30.

 

The spread was awful and the price shot up like a rocket so I started taking profit at $28.01 with highest profit taking at $29.92. The stock was super choppy so I ended up getting out my last 17 shares just below my entry. I am getting out of my trades early at the moment (something I need to be diligent on and currently working on, so I was going to keep those 17 or so shares for a higher price, but due to the choppy price I got out in the quick drop). I also didn't trade AIMT for the rest of the day due to the crazy spread and fast paced chop. I was lucky to take the profit at the top as it dropped so quickly.

 

[Robert H 453]

Awesome trade and welcome to the public journalling club, Robbie!

[Robbie Williams 12]

Thanks Robert! I've got my own trading journal in OneNote which logs all my trades but thought I'd share some of my trades on here - the good and the bad as they come along. Today was the first day where I thought that I'd give it a go after being green

[Robbie Williams 12]

AAOI ORB | Thursday 22nd February

Right after I got out of AIMT, I saw that AAOI was forming an opening range breakdown (ORB) on both the 1 and 5 minute chart. I have been making the mistake of only trading the 1 minute chart so I have been making a conscious effort to confirm what I am seeing on one chart is also whats happening on the other. With not much time to enter the trade due to it quickly tanking I shorted and got filled at $28.14.

 

I started scaling out of my position but realised that AAOI was very weak and continued to drop and was still showing bearish signs on the only 5 minute opening candle so I held my position. I noticed it start to lose momentum around 09:37 am I got out most of my position at $27.05 (A price drop of over $1 from my original entry) and kept some shares during the consolidation. Once I noticed that it wasn't getting any lower, with two higher higher, higher low candles on the 1 min chart, I got out the remainder of my position at 09:38

 

 

At this time, Andrew announced in the chat that he was waiting for a pullback for a good entry on AAOI and I believe him and some of the other traders got in on the action, getting fills around about $27.40. I thought I was done on AAOI but I still noticed massive bearish signs, so based on the 1 minute chart and hoping to hit the low of the day that had already been set with a tight stop, I entered again at 09:42 am at $27.29. I scaled out pretty quickly as I didn't want to give all my profit that I'd made back, but once I saw it was still so weak, I kept my position and rode it down to the new low of the day at $26.52 - a 68 cent move from my second entry.

[Robbie Williams 12]

SGMO FLAT TOP BULL FLAG + BREAK BELOW VWAP | Thursday 22nd February

After getting out my first position on AAOI, I was looking for another trade and I noticed on SGMO's 1 minute chart that it was forming a flat top bull flag. (Side note: I've been reading a lot of books and watching a lot of youtube videos on trading to try and absorb as much information as possible. I got into trading after reading Andrews book, and I am so happy that I joined this chatroom, as Andrew is a legend (like a boss ;) ) and all the people in the room are great. Such an amazing atmosphere and I am lucky that I signed up for this particular room. Apart from Andrews recap videos, I have also been watching Warrior Tradings recap videos on youtube, to see which stocks they traded in the exact period and noticed that they use similar strategies so I also purchased Ross’s book on trading (knowledge is power right). One of the strategies he apparently has coined is the “Flat Top Breakout (ascending wedge)”. To be honest, it’s basically the same as the Bull flag, but is more bullish, and leaves less guessing as to the entry, compared to a normal flag. During this period of consolidation, the stock moves sideways but makes higher lows).

 

Anyway back to the trade, I noticed that SGMO was making this pattern on the 1 minute chart (I’ve denoted this ascending wedge with the blue lines on the 1 minute chart below). I also noticed that the 5 minute chart was confirming this signal before jumping in.

 

I entered at $26.80 with a tight stop at 09:37am. Buying a flat top breakout is risky as you’re buying at the high of open. But then again, you've got Ross and a thousand of his traders looking for that exact pattern, so you can only hope that they see it, they get on board and it pops up and fulfils the setup... ;)

I did a scalp trade, scaling out quickly, up to $27.20 (40 cent) move and sold the remainder on the move back down at 09:39am

 

 

Later on, someone in the chat called SGMO as a potential short (thanks to whomever that person was BTW!). Andrew said “yeah it looks like a good short” so I decided to go short with a small share size at 09:46am to hopefully break below the VWAP. Both the entry on the 1 and 5 minute chart showed bearish signs - again, I'm trying to remember to get confirmation on BOTH charts before entering a trade. (I did read a nugget of information somewhere that stated, if you get into a trade and then ask yourself "Why am I in this trade - what confirms it etc" and you can't answer your own question, you actually have answered your own question!).

 

I quickly scalped this position as well, first 2 scales out right below the VWAP, and then keeping shares for lower. At 09:49 am I got out most of my remaining shares, held some and after the 1 minute closed higher and Brian P posting he’s out all in the chat, the party was over and I exited the remainder.

 

I’m very lucky that all my trades today were green. I’m hoping to post more and more of my trades on here, the good and the ugly, not only for my own benefit but also in the hope that it might help someone else :)

[Robbie Williams 12]

EXAS ORB, MOMO BULL FLAG | FRIDAY 23RD FEBRUARY

 

On Friday I scanned the stocks with the chatroom and kept the same stocks on watch as Andrew (I have been doing this in the simulator, however I guess at some stage I will need to take my first leap and create my own watchlist).

The stock I watched at the open was EXAS. It formed an opening range breakdown right at market open. I went short 200 shares at $40.50 and rode the momentum down.

 

I have been in a habit of taking my first lot of profit once the stock has moved 20 cents and then continue scaling out more as the trade goes on; in this case, lowest at $39.27. (If anyone has any idea whether that's the best option or not please let me know). I kept the remainder of my shares as not to get out too early, however on the 2nd 1 minute candle to make a new high, I was all out at 09:37 am at $39.59.

 

 

The stock moved up towards VWAP and with a bearish engulfing pattern on the 1 minute chart and still a bearish sign on the 5, I went short again. Unfortunately the stock didn't move down and I got stopped out for a 10 cent loss per share.

 

The second stock I traded was MOMO long, which Andrew called in the chat. At 09:33am you can see the stock making a bull flag pattern on the 1 minute chart and on the 5 minute chart, the only opening candle candle was also bullish. I went long and got filled around $33.71.

 

 

I exited in 2 positions just above entry - as you can see I have a really bad habit of exiting my trades too early. The stock made a consolidation on the 1 minute chart but I should never have got out as it showed bullish signs on the 5 minute and rode above the 9 MA on the 1 minute chart (I've coloured mine light red on my chart so it stands out a bit better than the other moving averages). It continued to go higher and higher all the way up to $34.50!

 

I made a measly profit on this trade while Andrew and others were able to stop trading after reaching their profit target on just this one trade.

 

I did two other trades but they're not really worth mentioning - a quick scalp on HPE as it ducked below VWAP and an ABCD pattern on MYSZ which didn't eventuate from its setup (it's a low float stock anyway which I try to avoid.)

 

Although I was green for the day, I wasn't happy with the way I traded MOMO. Despite my impatience and fear, in the future I will endeavour to wait for a valid exit signal before exiting my remaining position.

[Robbie Williams 12]

JD ORB | 05th March 2018

 

I did a couple of trades on Monday morning. One of the first was JD short which Andrew called in the chat. After assessing both the 1 and 5 minute chart, I went short at 09:34 when the price pulled back to the VWAP (First purple circle). I then covered some as the price dropped the first 20c and held on as it went lower. Andrew was adamant that the price was going to drop to $41.80 which was a level we had for yesterdays close on the chart (marked by the low red dotted line). Unfortunately, the 200 SMA was too much for the stock to break and it retraced from around $42.00 back towards the VWAP. I got all out at 09:49.

 

 

I then went short again at the VWAP at 10:02 (second purple circle), held for the next 5 minutes as the price consolidated and closed above the VWAP 4 times on the 1 minute chart. Luckily, I didn't bail out, and the price moved lower again, all of us hoping this time that it would drop to $41.80. Unfortunately, the 200 SMA was too much of a a level to crack and the price jumped back from the $42.00 level again (denoted by the cyan dotted line on the 1 minute chart) - I got out most of my position. I kept a nominal amount of shares to go lower, but removed my remaining position from the trade at 10:24 when the party was over.

 

 

 

 

 

[Robert H 453]

Hey, we're twins! Except I got stopped out on the second trade by just a penny lol.

 

Thanks for sharing, Robbie.

[Robbie Williams 12]

MU ABCD | 05th March 2018

 

The second trade I took on Monday was MU long. I entered on the pullback at 09:50 on the 1 minute chart. The 5 minute chart was also confirming that the stock could rise higher (all time high so no levels to base the trade on). Notice the low volume on the pullback between 09:45 - 09:49 on the 1 minute chart. I entered at 09:50 which I circled purple on the 1 minute chart.

 

I didn't like the price action as the stock closed red on my entry candle and then moved lower so I reduced my risk and got out half my position straight away at 09:51 - the next 1 minute candle. This was merely the pullback on the ABCD so I probably should have rode it out, and the price moved upwards. I began scaling out of the position, accidentally pressing the "COVER" button at 09:56 (circled red on 1 minute chart) which added more shares to my position! (Note to self: do NOT do that!). Luckily the price moved higher and I sold higher

 

 

I then went long again during the consolidation at 09:59 (yellow circle) and sold slightly higher for a scalp but I don't think I should have overtraded this pullback.

 

After the stock couldn't go higher, I decided to go short at 10:07 - (second purple circle) and covered lower but again I overtraded and shouldn't have possibly done this scalp trade which didn't have a very good risk to reward.

 

Lessons I learn from this trade:

1) Make sure you click the correct button to exit! Whether it is COVER or SELL!

2) Don't overtrade a stock when it's going in you're favour. When you're up on the day, it is easy to think you're a "stock whisperer" and you an overtrade for another easy "$50" but as you can see both the last trades could have gone the wrong way and didn't have the right risk/reward ratio.

[Robbie Williams 12]

Hey Robert, great to see the same trade you took on JD! I notice that I've been scaling out of my positions too much after comparing your chart - not so much of an issue with a broker that bases commissions on shares traded rather than tickets, but I noticed that you didn't cover until the price had dropped more than when I started scaling out.

 

What I need to learn is whether the stock has the momentum and also the "levels" or "windows" whatever you want to call them to allow a drop. So that you can then base your exit on either a quick 20 cent scalp, or as we saw with JD, holding tight with the momentum and weakness of the stock for a big drop.

 

Haha, you got stopped out, but if I was trading real money like you, I would have been clenching through the pullback on the 1 minute chart! You could say that you had a better risk strategy than me ;)

[Robert H 453]

I was in sim today, but I try to stay true to my stops as much as possible.

 

Are you still exiting in thirds? I take my first profit after a 0.30 to 0.40 move. I try to take profit again at the first target. This leaves me with 45% of the shares remaining. From there I take profit based on price action (lower highs, lower lows; double bottoms, dojis, engulfing, new 5-min high or low, etc.). I try to exit everything well before break-even. Still learning and getting better at this, though.

 

Sometimes I keep a tiny size (like 10%) for as long as possible. This means break-even, or sometimes even slightly red. I recall my VRX short last week, my final 10 shares generated more profit than my first 33!

 

Taking profit is probably the most overlooked day trading skill. Everyone is concerned about setups and entries, but all of that is meaningless if you don't get paid!

[Robbie Williams 12]

Exactly - entry is only half of the trading aspect (apart from finding the setup to being with and the psychology).

Yes I am still taking in thirds - I am thinking I'll create a button which I will use to exit 20% of my position after a 30 cent move in the right direction, and then not take profit until my first target is reached. I'll see how that goes, I need to continue to log how many shares and at what price I exited to see what is the best in terms of exit strategy.

[Robbie Williams 12]

GBT ORB | 10th March 2018

 

At the market open, I saw the GBT was weak so I went short only seconds after market open. I would not recommend this and probably wouldn't do again! I didn't look at the spread and it was terrible and so got filled at the bottom of the first 1 minute open candle (first purple circle). I held on and the price was all over the shot but managed to sell and get out for a profit.

 

 

Once the 5 minutes had settled down, I saw the the stock could't push about the VWAP so I went short again and because of the spread or the quick movement of the stock, I again got filled way lower than I was hoping. Still, I managed to book a profit but I need to be mindful of spread in regards to fill of orders.

[Robbie Williams 12]

ZSAN ABCD | 10th March 2018

 

I had ZSAN up on the screen and I saw it making an ABCD pattern on the 1 minute chart (circled yellow). It also looked good on the 5 minute chart. During the pullback I went long, but not many shares as it was moving around quite a lot in terms of price. The volume came in and with an entry at $22.52 I was able to sell up towards $23.80 taking profit along the way.

 

 

I overtraded today. The second trade I took on this stock (I actually traded 7 stocks today which is WAY too many) was at 09:57 when I went long again. I have button troubles and once again inadvertently managed to add to my position (yay) but did sell for a very small scalp profit, less than the pop I was hoping.

 

I learnt from this trade - 1) do not overtrade 2) Make sure you're clicking the correct buy or sell button! 3) Perhaps add more shares to a solid setup like the first ABCD pattern so you've booked the daily profit you're after and then don't have to search for mediocre setups later in the day

[Robbie Williams 12]

HGV Test low of day | 15th March

 

I opened up at the chatroom and DAS at what I thought was 09:00am New York time. Lo and behold Andrew had already finished trading! It was 10:00am New York time due to the daylight saving changeover! I was nearly going to go back to bed but I pulled up the charts on my monitor and looked for any good stocks to trade. Hmmm... not much to trade 35 minutes after the open!

 

I was looking at HGV - I went short at 10:06 (purple circle), as soon as I shorted the shares I added a 20 cent stop using my recently created hotkeys (code is : ROUTE=STOP;StopType=Market;StopPrice=AvgCost+0.2;Share=Pos;TIF=DAY+;BUY=Send; )

 

I was busy looking at other stocks and I got stopped out 19 cents above my entry (green circle) . It looks like I got stopped out way above the entry but the scales can be deceiving.

 

 

At 10:26 I saw HGV losing the VWAP so I went short again (blue circle), and covered most of my position on the fall. I kept a remainder of my position and held onto them until I had a definite sell signal . At 10:40 after making a new higher higher and higher low on the 5 minute chart I got out below my entry (pink circle 2)