03-25-2014 Trading Journal

Market had a bounce today; but it was a soft bounce.  Not the “I’m going back up!” bounce.

SPY_Daily

Notice that price is still inside the consolidation range.  We may stay in this range for some duration.  I rather stay in the range than to watch a waterfall, do you agree?  However, all the technical signs are biasing to the downside.  5 MA is now pointing down and below the 15 MA line. Both momentum indicators are pointing down.

I made two big mistakes today.  Mistakes that I should know better…

The first one was selling out my $TZA at the open without giving it time to work it out.  The chart wasn’t so bad that I had to sell.  In fact, if I had a bit more conviction, I should be able to take some heat and see where it ended at.  Although I sold at breakeven, I threw away a trade that still has the potential to run.  Why didn’t I buy it back?  Well, ’cause I used up the free cash for other things and the other cash were tied up with the three-days settlement.

TZA_daily

Did you see that the 5 MA line just crossed over the 15 MA to the upside?  It is like a upside down mirror of the SPY chart above on the 5 & 15 MA lines.

The other mistake I made actually cost me a bit of money.  I bought $CERS for the bounce this morning and was completely ignorant of the potential $40 million dilution that was announced last Friday.  Why didn’t I read the news to find out why such a big drop yesterday?  I was assuming that yesterday drop was just in sympathy with all the other drops everywhere.  Anyway, while the buy itself was a mistake, the bigger mistake was that I bought size.  Ouch!  When price dropped to $4.80; it reached my pain limit so I sold to cut losses.  I sold ’cause I finally read the news and realized the mistake.  While I made a mistake, I did the “correct” thing by cutting losses pronto instead of trying to justify staying in the position.  That is the way you have to play it if you want to stay in the game and keeping your gain.  While it hurt, I felt relief.  Even when price bounced back by the close; I didn’t care.

I also added back some $CARA I sold yesterday ’cause I like this stock.

I bought back $MZOR and $SEED as well but only half of what I used to own on the former and only 1/5th of the latter.

To top it, I bought $NUGT to supplement my $SVBL position.  I like the chart on $NUGT ’cause it looks good for a bounce.

Because of my error in $CERS, my port went down a bit which was mostly the $CERS losses.  The other minor fluctuations were offset by the gain in $LRAD.

Current holdings:

$LRAD, $SVBL, $MZOR, $CARA, $NUGT, $SEED and 40% cash.

From my other account:

Well, I’ve to admit that I made a mistake yesterday selling $FITX.  As a result, I’ve to pay premium to buy them back today.

Why do I buy it back?

i reviewed the list of cannabis related stocks last night and I couldn’t find anything I like to buy.  I thought of $PHOT but I didn’t want to pay the $0.50+ to buy it. Most of them are already trading at premium price.  $FITX remains the underdog that has the potential to jump over all others in spades.  And when I didn’t see other selling down $FITX, I decided to bite the bullet and paid the premium to buy the shares back.  I will add more if $FITX decides to drop a bit.

As the production facility continues to develop into the final stage, I can see price climb as well.

FITX_daily

From the look of the chart, it is trading at neutral without bias in either sides, up or down.

My 2 cents.



Categories: Daily trading Journal

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