06-04-2014 Trading Journal

The market continued to inch higher…

SPY_Daily

There was no doubt the bull was in charge today by looking at the daily chart.

Unfortunately, I couldn’t say the same for my own trading today.  Instead, I hit the reset button today to cleanse myself of trading chaos in my port.

Trading chaos?

Do you remember those times when everything you did was just not “right”?

Today was such a day for me…

It all started with my dumping $AMRN in the morning and then saw the price climbed back higher without me.  Normally, this wouldn’t bother me ’cause I would just buy them back if I felt the momentum had reversed.  But the thing was that it had been umpteen times I’d been flipping $AMRN and today “missing out” after exiting the trade simply moved me closer to my internal reset switch.

$BIOS was trading higher not long after open so I added more.  It all went fine until in the late afternoon when $BIOS failed to maintain attitude and fell back down from $8.20 twice intra-day.  And when price breached the $8 support and traded below it, I knew I had to sell to protect profit ’cause the daily bar was forming a possible gravestone doji candlestick bar.  This could become bearish if price trades lower than the today low tomorrow. But I preferred to jump the gun and take my money first.

Maybe because seeing $BIOS gave back the gain so easily after what I thought was a strong day, it triggered my sense of “hopelessness” in my perception of the market trend.  It didn’t help when I saw $DMRC continued to deteriorate in price momentum; $NVLX turning back down after CEO and COO interviews; and $KGJI dropping further down despite a stellar earnings report in the last quarter.  It was like the stocks I was holding were defying logic simply to prove me wrong.

Then I questioned myself about buying into $INO in front of the reverse split and the Phase 2 result.

“Holy Smoke! What was you smoking, Z?  Why don’t you go to Vegas for that?  It would be more entertaining…”  

That voice in my head was all I needed to take action to cleanse myself of positions that were trying to tell me I shouldn’t be holding…

Immediately, I dumped $INO at breakeven.  Thanks goodness for the breakeven.

Then I dumped $KGJI to cut losses.  This was a tough one ’cause I was sitting on huge gain I didn’t take after the spike up from the stellar earnings report.  Instead, I added more which caused me to lose money due to higher average price from averaging up.

Then I sold $NVLX.  This one has a story similar to $INO, a technology that has been around a long time but nothing come to fruition yet.  In $INO case, it was synthetic vaccine, in $NVLX, it was “cell-in-the-box”.  Both technologies have the allure of saving the world and yet no one has cracked the code yet.  It was like someone “almost” invent a perpetual motion machine. Needless to day, I fell for the story hook, line, and sinker.  Although I don’t have any position on $NVLX and $INO now, I do want their technologies to succeed.  Well, I guess it is safe to say that everyone wants the perpetual motion machine to exist as well…

Then I sold $SEED.  $SEED’s last quarter earnings was horrible but the news of another China company offering a buy out propped the price back up above $2.00.  What bothered me the most was that there were no news at all from $SEED regarding the status of the offer or any counter-offer.  It was like the offer wasn’t really there.. or is it still there?  Well, with my internal fuse kicked, it didn’t matter if the deal was real or not, it lost its power over me so I sold to lock in whatever gain I had.

NO!  I couldn’t sell $DMRC.  I couldn’t even if I want to.  $DMRC is the “one way ticket” kind of stock, the kind that say, “once you are in, you better be right or you will lose big”.  I can think of it as similar to buying a piece of real estate in the outskirt of the town ’cause you believe the town will eventually grow into the land you have bought.  I’m betting that the future will adopt the Digimarc UPC barcode format, so I’m holding this purely for fundamental reason.

I’ve high hope for $LRAD and its technology.  At least the technology is actually functional and working, unlike $INO and $NVLX.  Like $DMRC, I’m just waiting for the world to adopt the technology.

There you have it, today I woke up and threw out the garbage (don’t worry, my garbage is someone’s treasure… meaning I could be wrong in selling them).

Oh yeah, did I mention that these positions that I’ve had were also draining out my YTD gain?  Seeing that I’m dangerously close to giving back all my gain for the year also contributed to my “kicking the fuse” to sell out.  YTD gain is now down to 1.50% for the year.

Current holdings:

$LRAD, $DMRC and 47% cash.  Yeap, these two positions comprise more than 50% of my portfolio.

My 2 cents.

 

 

 

 

 

 

 

Meanwhile, my own



Categories: Daily trading Journal

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: