Day Trading Journal for Robert H

[Robbie Williams 12]

Thanks for the reply Robert - what you wrote makes total sense. The 5 minutes chart for setup purposes with the 1 minute chart for the best entry positions on pullbacks. In regards to the reversal, I haven't traded one myslelf yet but I think because that is a slower setup, the 5 minutes chart seems a lot more obvious.

 

In regards to scalping trades, the 1 minute chart make sense. I am still trying to figure out whether my trade (be it a ABCD, Flag etc) will have enough momentum the break highs or be a scalp trade where I should just be looking for a 10-15 cent profit.

 

I'm going to try what you wrote above and judge some of the setups on a 5 minute chart when the market opens again on Tuesday and see if it gives me a less "seat of the pants" experience.

 

Cheers

[Robert H 450]

No worries, Robbie. To add to my previous points:

 

Andrew is always saying the 1-minute provides better resolution. The way I interpret that is like using a powerful zoom lens on a camera or microscope. It allows you to focus on the minutia of an object, but you lose the big picture of what your study is. Max zoom has very specialized uses, similar to the 1-minute chart.

[Robert H 450]

KHC Opening Range Breakout – February 16, 2018

 

First Trade

KHC capitulated in the opening 5 minutes, but I patiently waited for the first candle to close before going short. My entry was 68.51, with a stop above VWAP at 68.95. The target was 68.15, for a risk-to-reward 0.8. During the excitement of the sell-off, I quickly forgot that this was not a favourable ratio and took the trade anyway.

 

The price tanked below my original target of 68.15 to 67.65, but I got greedy and didn't take any profit. The following 5 minutes saw a massive bullish engulfing candle form. I had the chance to get out at break-even, but again I froze. When the price popped above VWAP, I stopped out for a huge loss.

 

 

Second Trade

Immediately after that pullback, I saw a better entry right below VWAP. This time I placed the stop at 69 to give it some more room. My target was the same, at 68.15, for a better risk-to-reward of 2.6 this time. Having learned my lesson from the first trade, I covered at 68.50, 68.15, and 3 times after during another pullback to VWAP. The gains from this second trade almost covered the huge loss from the first.

 

This was an important lesson in trade management. I could have gotten out of the first trade with a profit, or break-even at worst. The market was giving me information that I chose to ignore (at my own peril). Commissions are cheap; I could have easily gotten back into the 2nd trade with a clean slate. Instead both trades resulted in a wash.

[Robert H 450]

MU VWAP False Break Outs – February 20, 2018

 

MU was the definition of chop today. The stock was not in play and mirrored SPY tic-for-tic. Despite this fact, I traded it four times and got chopped up six ways from Sunday.

 

I expected the price to break away from VWAP and ignored that we were range bound between the 9 and 20 EMAs. These trades were the perfect examples of revenge trading and letting my emotions get the best of me. I kept going back for more even after admitting it was a chop-fest.

 

 

First Trade

Went short after it closed below VWAP. Price pulled back above VWAP and was stopped out.

 

Second Trade

Went long after it closed above VWAP. Price pulled back below VWAP and was stopped out.

 

Third Trade

Went short after it closed below VWAP. Price pulled back above VWAP and was stopped out. Starting to see a pattern here?

 

Fourth Trade

Went long after it broke above the consolidation area around the 9 EMA, with an ABCD setup in mind. Entered on a new 5 minute high. Got spooked when the price went below the 9 EMA and sold for tiny gain. Notice how it popped up to 45.10 immediately after? I was a psychological mess after losing 3 in a row and let my emotions dictate the trade.

 

Lessons learned:

1. Stay away from stocks that are not in play

2. Watch for moving averages as support/resistance (duh)

3. Stop trading chop out of revenge

[Robert H 450]

BZUN ABCD – March 6, 2018

 

BZUN gapped up to all-time highs. It grinded up the entire day, never losing the VWAP once. At the close, I saw an opportunity to ride the momentum after an ABCD formed. I entered on a new 5-min high at $45.87, with a stop below the 9 EMA at $45.60. The target was $46.50 (half-dollar level) for a risk/reward of 3.7.

 

I took profit at the first target and continued taking off a third every 0.25 or so. It continued making higher-highs and higher-lows, so I was in no rush to get out. The final shares were sold at $47.77. It quickly popped up to 48.75 just a few seconds after, but what can you do. The stock was really extended at this point and a dump was possible with the closing bell just minutes away.

[Robbie Williams 12]

Awesome trade Robert - its interesting to note the low volume on the pullback and also the doji and spinning top as people took their profits and then you got in on the next 5 min candle which made a new high.

[Robert H 450]

MU ABCD/Moving Average Trend - March 12, 2018

 

MU was a freight train today. It was on the Gappers Watch List and surged after the Open. I missed the 5-minute ORB that Andrew and some other members in the chat took. At 9:52 AM EST, I saw an ABCD forming. I waited to get in on a new 5-min high at $57.40. My stop would be a break of point C, around $57.20. The first target would be HOD at $57.90, with higher targets between $58-$59.

 

The stock was relentless and surged up in a panic-buying frenzy. I took profit--selling a third at a time--between $57.80 and $58.10. Seeing how bullish the stock was, I decided to keep my last 10% of shares until break-even. I set a hard stop and took a nap. When I came back, the stock was trading above $61! The momentum began to fade and it finally lost the 9 EMA. I sold my remaining shares at $60.75.

 

The last ticket (10% of position) generated nearly three times as much profit as the first ticket (33% of position). Wow.

[Robert H 450]

OMER VWAP Reversal - March 22, 2018

 

OMER gapped up a whopping 60% this morning. I missed the 5-min ORB to the downside as I was in another trade. At 9:45 AM, the stock failed to make a new low and had put in a double bottom. I went long at 16.20, with a stop at 15.75. My target was VWAP and the MA's above. The risk/reward was somewhere in the neighbourhood of 1.6.

 

The stock was strong and kissed VWAP. I took profit along the way as it began losing steam. The following candle was a shooting star Doji which was also very concerning. I prepared to exit all at break-even. Luckily, it popped again to VWAP. Somehow I missed the exit at 17.15 and I sold my remaining shares on a new 5-min low.

 

This was my first time taking a VWAP Reversal after seeing Brian and Andrew calling them in the chat recently. I may have jumped the gun on the entry as the bullish candle had not closed yet. Andrew went on to take the same trade when the candle closed at 9:50, with an entry around 16.50.

[Robert H 450]

FB Over-Trading - March 26, 2018

 

FB was in play and presented very nice, clean price action for the entire session. I missed the huge ORB that most people caught at the open, but ended up trading the stock 6 times. 5 turned out to be winners.

 

1st Trade - Reverse ABCD

After the huge sell-off in the first hour, I waited for a pullback to get in on the short frenzy. I waited for consolidation, followed by a bearish engulfing candle to confirm that sellers were back in control. The entry was 151.90, with a stop at the 9EMA above ($153). The target was the LOD for a risk:reward of 1.4. I took profit 4 times at the LOD and beyond, with the final exit at break-even.

 

2nd Trade - ABCD Long

After FB squeezed the shorts on a bottom reversal (which I missed), I waited for it to get back to VWAP. I never go long below VWAP unless it is a reversal play. After testing VWAP a couple of times, I entered on a new 5-minute high at 154.59. My target was the 50MA with a stop below VWAP. The risk to reward was 2.2. Again, I sold in 4 steps at my target and kept the last bit for break-even which took nearly 2 hours to hit.

 

3rd Trade - Top Reversal

I'm not very proud of this trade because I missed the new 5-min low on the previous candle. I waited for a pullback to finally short at 156.66. It wasn't the greatest entry and I was forced to use a moving average on the 1-min chart as a stop. I would normally classify this as a chase since a big chunk of the move had already passed. My target was the 9MA and 20MA, for a risk:reward somewhere around 2. The bearish drop continued and I covered in 5-6 steps at my targets.

 

4th Trade - ABCD Long

After closing out my position on the previous short, I saw what looked like an ABCD pattern forming. I jumped the gun and went long before a new 5-min high was being confirmed. Big mistake. The stock tanked on a huge red candle afterward and I missed my stop. FB plunged through the 9 and 20 MA's like a hot knife through butter. I ended up holding for 30 minutes before taking the $1/share loss.

 

5th Trade - ABCD Long

Like the trade before, I saw a potential ABCD forming in the final half-hour. This time I waited for a new 5-min high and volume. Buyers came in like crazy and I managed to go long at 156.08. My target was the 200MA, with a stop below the consolidation area around 155.5. The risk:reward was 2.8. Seeing how volatile the price action was, I took profit before my target but kept some for the moving average.

 

6th Trade - Scalp to Previous Day Close

After watching the momentum train leave without me, I saw a chance to go long an ABCD pattern on the 1-minute chart. I waited for a pullback and went long at 158.80. My target was the PCL at 159.4, for a risk:reward of 1.6. In all honesty, I was only hoping for a 0.50 move, but the price punched through the PCL like Jean-Claude Van Damme in his Bloodsport days (Dim Mak!). I took profit above the PCL and $160.

 

Facebook has been really clean as of late. Despite the negative press and huge sell-off, clear patterns are presenting themselves throughout the day. There are plenty of long and short opportunities for the patient trader. Volume is stellar and spread is tiny. I wish all stocks behaved this way!

[Andrew Aziz 97]

nice!

[Robert H 450]

FB Top Reversal – April 10, 2018

 

The day that Mark Zuckerberg testified in front of a Congressional hearing, FB soared $5 in half an hour. It was getting extended from the 9 EMA and I waited for a short opportunity. After the bearish engulfing candle appeared, I went short at 164.95. Seeing as how far the top was, I used a moving average on the 1-min chart for my stop loss of 165.25. The profit target was the 9 EMA for a reward-to-risk of 2.9.

 

The next candle saw a huge plunge and I took profit along the way. However, the bulls were still strong and it bounced off the 9 EMA like a rocket booster. I quickly covered my remaining shares with the last bit just below break-even. I am really proud of this trade because I didn't chase the run-up and waited patiently for a better trading opportunity to present itself.

[Robert H 450]

FB Top Reversal – April 11, 2018

 

FB was bullish again after Zuckerberg testified yesterday. The stock touched $168.65 as it marched up steadily during the midday and afternoon. Again, I waited for a short opportunity. This one came with just 15 minutes left in the trading day. After a big wick doji appeared, I waited for signs of a top reversal. I went short on the new 5-minute low at 167.68. My stop was a moving average on the 1-minute chart at 167.90, with a potential target of the 50 EMA on the 5-minute chart. The reward-to-risk was somewhere around 2.5.

 

After it lost the 9 and 20 EMAs, the bottom fell out completely. The 50 SMA couldn't support the sell-off and it tanked all the way to VWAP. I covered along the way and exited my remaining shares at 3:56 PM.

[Robert H 450]

FB Opening Range Chopfest – April 13, 2018

 

Facebook was not in play today. However, I've been keeping it on the watchlist along with MU. I paid dearly for that as I was chopped up in the first 15 minutes.

 

 

1st Trade – Opening Range Breakup

FB opened strong above VWAP and I went long near the break of the opening 5-minute candle's body. Unfortunately I was unable to take any profit on the pop and was stopped below VWAP.

 

2nd Trade – Opening Range Breakup

After seeing the chop in the previous candles, I kept trying for another ORB. I went long after we cleared the 15-minute opening range body. I was stopped out below VWAP again. Ouch!

 

There is nothing really interesting about these trades. It is more of a reminder to stay away from chop. The second trade was completely unnecessary and avoidable. I wanted revenge for the first loss. Look at how FB continued to chop around the moving averages after losing VWAP. The cluster of lines look like a railroad yard on a map.

[Robert H 450]

MU Opening Range Breakdown - April 13, 2018

 

MU opened really weak and looked like the perfect ORB to the downside.

 

1st Trade

I did just that and shorted it after the pullback to VWAP. On the very next candle it decided to pullback to VWAP again and I was stopped out. I was very cautious of the stock after that.

 

2nd Trade

Once MU tested and lost the VWAP for the third time, I went short on a 15-minute ORB. My entry was 52.95 with a stop above VWAP at 53.20. My initial target was the previous day close (PCL) at 52.60. The reward-to-risk was rather low at 1.3.

 

The Bears took control and MU completely lost it. It dropped nearly $1 on the single 5-minute candle. I tried being patient and scaled out slowly. At the 52.17 level, I was all out of shares and closed the position. The stock pulled back momentarily and continued it's descent to $51.60! That's almost a $2 drop from the open.

[Robert H 450]

LITE VWAP False Breakout / Bull Flag - April 17, 2018

 

LITE sold off big at the open after it lost VWAP. It tested the level multiple times but looked really weak. Then at 11:10 AM it punched through VWAP and formed some sort of a bull flag. I waited for the consolidation and went high on a new 5-min high at 58.90. My target was the HOD for a reward-to-risk of 3.3.

 

The stock popped on high volume and touched 60.40 on the very next candle. I took profit along the way and decided to hold my last remaining shares for $61. Unfortunately it peaked at $60.50 and I sold the last handful for a tiny profit 2 hours later.