Day Trading Journal for Robert H

[Robert H 450]

CNET Bull Flag Momentum - January 5, 2018

 

CNET was on our watchlist, but it didn't look tradeable all morning (to the long side, at least). Then at around 10:30AM, I saw a Bull Flag form. There was a huge pole and then consolidation flag. After a new 5 minute high was made, I went long at around 7.80 and rode the momentum up to 8.25. Note the surge in volume on the move up.

 

 

I was lucky to have taken profit as the move was very short lived. The stock tanked afterward and plunged below VWAP for the rest of the day.

[David from CT 29]

Excellent trade Robert! Just another example of watching the right stocks, and not giving up on them when they don't produce an opportunity immediately at open. I have had trades like this before and it reminds me that patience is a critical skill. Thanks for sharing.

[Robert H 450]

STX Opening Range Breakdown - January 8, 2018

 

This was a great Opening Range Breakout (ORB) trade that I wanted to share. I'm still in simulator but it was a nice setup either way.

 

 

STX gapped up big in the pre-market, but began trending down at around 9:20 AM. I noted that the first 5 min candle had a pretty small body and could potentially be a good ORB to the downside.

 

On the open of the 9:35 candle, I went short. My entry was great at 48.38, just below VWAP. My stop was 0.10 above VWAP, at about 48.70. The profit target was the 9 EMA down at 47.60. So the risk-to-reward on this trade was 2.4 (0.78/0.32).

 

It quickly sold off and I began covering in thirds on the way down. The price actually tanked through the 9 EMA on extreme weakness. I kept a very small portion through the pullback and it eventually hit my 46.85 price-level (and even lower). This one single trade exceeded my daily profit target and I was done for the day at 10:10 AM!

 

ORBs are one of my favourite setups, as long as it isn't too extended from VWAP and the opening range isn't too large. This one traded just like an example from Andrew's book.

[deejaypj 14]

Great trades Robert. Thanks for sharing your examples.

[Robert H 450]

XNET ABCD On Second Attempt - January 11, 2018

 

This was me trying to be a hero and trading XNET using the 1 minute chart. I've drawn boxes on the 1 minute chart around my entry points. Essentially, the box shows what's happening inside the 5 minute candle.

 

 

First Trade: Entered on a new 1 min high after consolidation period. Volume was slightly above average, but not that much more. Price failed to make a new 1 minute high and began trending down. I got stopped out right before the drop to 23.35. Phew!

 

Looking at the 5 minute chart (below), you can see that we were still in consolidation period. The stock actually made a lower high during the candle I entered. The following candle--where I was stopped out--was even lower high and lower lows. This was clear after the fact and looking at the 5 minute chart. Definitely not a good time to be going long! Also, the volume was well below the moving average.

 

 

Second trade: I wasn't discouraged and kept watching XNET. At around 11:10 AM, I saw a mini Bull Flag on the 1 minute chart (above). The 5 minute chart confirmed that a new high was being made. I went long. The stock popped up with good volume and I sold on the momentum up. I managed to exit a good chunk near the new high of the day (24.20), and made back the loss from the first trade.

 

Although XNET is choppy, it isn't low float by any means (65M shares). I should have been looking primarily at the 5 min chart for the ABCD setup, and the 1 min chart for entry--not vice versa. The 5 minute chart was just way more clean.

[Mustafadayan 0]

Nice work Robert and David!

[bike2la 0]

Robert Thanks for sharing your trades.

Great suggestions to screen shot and take notes....

 

 

[bal 2]

Very well executed and explained. Thanks.

[Robert H 450]

MARA Fake Fallen Angel - January 12, 2018

 

Today I tried out Andrew's Fallen Angel Strategy for the first time. You can read about it in detail here.

 

MARA was on our gappers watch list and was a Nasdaq top gainer--up 40% in the pre-market. It is low float with only 10M shares. The open saw about 1M share volume, but it didn't really pop up like an Angel should. First mistake! Nonetheless, I watched it sell off below VWAP and hold some sort of level at the 50 SMA. So far, so good right?

 

It bounced along the moving average for about 15 minutes and I waited for an entry when the volume spiked. The high of the day was $5.07, and high of pre-market at $5.40. With an entry around $4.70, the risk to reward was 2.5 at high of the day, and 4.5 at the high of pre-market. My stop loss was somewhere around $4.55 at the break of consolidation and moving average. Here is the setup on a 5 minute chart:

 

 

At 9:55 AM, I saw a slight increase in volume and I went long at $4.73. The price popped up a few pennies, but it failed to pick up any steam on the 1 minute chart (below). The volume was above average for that time frame as well, but nothing spectacular--about 80k per minute. When it failed to make a new 1 minute high at 9:57, I grew concerned. By 9:58 my gut told me that the momentum wasn't coming. I quickly exited the trade at $4.71, for a 0.02 loss per share. Here is how it panned out on the 1 minute chart:

 

 

Immediately afterward, the price tanked to $4.50. Within 15 minutes, it had hit $4.25; I had averted disaster. This Fake Fallen Angel turned out to be a reverse ABCD! I am so glad to have gotten out with a tiny loss. Looking back during the trade, I remembered from Class 4's Fallen Angel slides that if the volume doesn't come in, don't trade it. It was Andrew's voice inside my head that saved me!

[Robert H 450]

JUNO Bull Flag Momentum and Top Reversal - January 18, 2018

 

JUNO has shot up 50% since the recent buyout news. Yesterday it was #2 on the Nasdaq top gainers list. Today I traded it twice.

 

First Trade: At around 11:40, I caught the latter half of a $5 surge. My entry was $72.80 after it consolidated and made a new high on the 1 minute chart. I rode the momentum all the way to the HOD--and all time high--of $74.35.

 

 

Second Trade: Immediately after, I saw a bearish engulfing candle form along with some large bids on L2. It had failed to make a new 5 minute high and had nowhere to go but down. Traders were bound to take profit at some point--especially at a new all-time high.

 

I went short at $73.40 with a target at the 9 EMA. I took profit all the way down to $71.75. Afterward it consolidated around the MA and finally returned to VWAP, where it bounced around until the close.

[Robbie Williams 12]

Hey Robert I'm loving these trades, thanks for sharing!

[Andrew Aziz 97]

Excellent! Very useful

 

Robert, make sure this will be shared for users in weekly emails. Encouraging and educational.

 

 

[Robert H 450]

EBAY ABCD/Moving Average Trend – February 1, 2018

 

EBAY was on our watchlist after gapping up big in the pre-market. The stock was at new all-time highs (ATH). At the Open I couldn't find any clear direction, until about 10 AM an ABCD pattern was clearly forming. I patiently waited for a bottom to be put in and quickly calculated the setup variables. My stop loss would be somewhere around $45.80 (point C), with the first profit target at $46.50 (point B). If I could get a good entry around $46, then my profit-to-loss potential was somewhere in the neighbourhood of 2.5.

 

 

I waited for point C to clearly form and then went long on a new 5-min high. On the very next candle, there was a pullback towards VWAP but I held my ground. I could have easily panic sold below my entry, but the price was still above my stop loss. As the stock continued to make higher highs and higher lows, I noted that we were riding the 9 EMA. At 10:30, EBAY dipped below the MA but it didn't close below it--so I held.

 

After riding the Moving Average Trend for nearly 45 minutes. I took some profit at $46.50. I continued taking profit all the way up to $47. When I saw a Shooting Star Doji form at around 11 AM, I sold my remaining shares. The stock broke below the 9 EMA shortly after and trended back to VWAP.

 

Not everyone is comfortable being in/out of momentum trades in 5 minutes or less. This was a great example of using the classic ABCD strategy to gain a favorable entry, and exercising patience during a slow but profitable trade.

[Robbie Williams 12]

Hi Robert, I notice you recap your trades based on setups from the 5 minute chart. I've been trying to turn my attention from the 1 minute chart to confirm on the 5 minute chart as I seem to be basing my trades 90% on the 1 minute chart which is not ideal.

 

Would you say that you base most of your trades entries on the 5 minute chart and then focus on the 1 and 5 min chart for exit positions or does it depend on what chart you see a setup on, time of day etc etc? I'm just interested to know what other traders are focussing on in regards to the 1 and 5 min chart.

 

Obviously there is a lot less "chop" on the 5 but there is also maybe not the same amount of detail in quick setups?

[Robert H 450]

Hey Robbie, I'm still learning (who isn't) but here's my two cents:

 

I watch both, but give more weight to the 5-minute. It is what I base my decisions on and what I use to identify strategies (i,e ABCD). Setups are just way more clean. Price action signals like engulfing patterns and higher-high/higher-lows are often noise on the 1-minute. There is just too much choppy movement. I try to use the 1-minute to get favorable entries on pullbacks, etc.

 

It also depends on the speed of the trade; for example a scalp vs. a reversal. In the former, I would use the 1-minute to enter/exit. The latter may take 10-15 minutes to clearly set up, so I base my decisions on the 5-minute.

 

For low floats--which I am avoiding at the moment--the 1-minute provides good signals, but only when the 5-minute is confirming it. The XNET trade above was a good example of bullish 1-minute price action during a bearish/neutral 5-minute setup.

 

Long story short--I could trade purely on the 5-minute, but can't say the same about the 1-minute. You only grey faster basing entire trades on the 1 minute.