04-10-2014 Trading Journal

Well, the market finally broke thru the support that it couldn’t do for three times.  Only this time, the fourth time is a charm…

SPY_Daily

Today became the day I was expecting to happen yesterday.  Although I was one day late, it didn’t stop me for jumping back into the $TZA train.

After the market opened and I saw it struggling to stay afloat, I immediately bought a starter position on $TZA and waited to see what happened.  It wasn’t a smooth sales.  My $TZA position were yoyo-ing b/w green and red until price finally broke thru the opening range on the upside.  I immediately added more and continued to add as intra-day highs were taken out again and again.  By the time I was done adding, I bought the full position as yesterday plus more.  I also bought back $FAZ.

The reason I had no qualm buying back $TZA and $FAZ ’cause I expected this bounce might not hold.  Seeing the DOW was tanking, I began to liquidate my swing trade position to stop the bleeding by selling $SVA first.  Later on, I sold $SEED when I saw the large bids made available.  It wasn’t a great price but if I wanted out, I couldn’t complain.

At first. $NUGT opened higher and stayed high even when DOW was initially falling off the cliff; thus, I did not sell to lock in profit.  I placed a stop where my breakeven point was and was stopped out not long after.

By day close, $TZA was banging its head against the 89 MA line.

TZA_daily

Knowing the power of the 79 & 89 MA lines, I decided to sell half of my $TZA and $FAZ near the close to lock in gain.  I’m always mindful of a gap open against my positions. And I can always buy them back the next day if price continues to the upside. Yesterday was a perfect example of why I had no qualm unloading my $TZA position to take losses ’cause I knew I could always buy them back the next day if circumstances changed to reflect my directional bias.

Due to my non-hesitation in buying back $TZA and $FAZ, I was able to generate gain as a hedge to offset the losses from $LRAD, $SVBL, $SEED, and $SVA.  It was another perfect hedge, the port remained unchanged once again.

Current holdings:

LRAD, SVBL, TZA, FAZ and 59% cash.

From my other account:

First, I was glad I sold $MCIG yesterday to lock in gain.  However, I was not so lucky with $FITX.  Of all things, one of the most popular cannabis stock $PHOT was suspended from trading by SEC.  At first, I thought the drop was normal giving the DOW was waterfalling; but the speed of the $FITX fall baffled me.  And when I scrolled down to look at the other cannabis stocks, I realized $PHOT trading was suspended.

With that realization, I decided to unload my $FITX position as well just to be safe.  It was tough to take a big hit on the position but the uncertainty of $PHOT investigation spilling over to $FITX was unsettling.

In about an hour before market close, Bill from $FITX gave investors a brief summary of how everything was still in good shape and that $PHOT investigation should not affect $FITX since they started this Lakeshore project way before a deal was struck with $PHOT.

Giving the assurance from $FITX, I decided to buy back 75% of my shares as a premium price ’cause price rallied hard not long after the statement.  Oh well, today was the 2nd time I had to buy back in $FITX at a premium.  I’m sure that if price took off due to $FITX success, I would look back at today premium as an insignificant issue.

Trading spotlight–> the moment you let go of the angst of paying premium to buy back your shares after selling your shares to either cut losses or lock in profit, you will find the freedom to sell your position as your trading plan dictates.  It took me awhile to understand this lesson but I finally get it.

My 2 cents.

 



Categories: Daily trading Journal

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