March 11, 2014

Hey everyone! So let me just recap the last couple of days. Didn't really do much trading just watched the markets and $PLUG had what a run. Unfortunately that great run came to a stop and if you shorted the stock today, you would have great gains!

So this morning I woke up to a email from my online broker (TD Ameritrade). That my account was approved for margin! So I was excited and went straight to my computer to see what stocks were hot today. Checked Twitter and everyone was talking about $CDTI. So I checked the stock and yesterday that stock had closed at $2.82. That same stock was trading like crazy in the pre-market! The high was $4.88 in the pre-market! Crazy! So my plan going into this trade was to wait for the stock to washout at market open. It washed out alright, but not as much as I wanted it to... The stock shot up from $4.25 to $5.73 in a matter of minutes! At this point I wasn't even going to enter this trade. But some time went by and I decided that I wanted a piece of this yummy apple pie! So I started trading it.

(This chart will show you when I entered the stock and when I exited. Yes I did trade this stock 3 times in one day and my day trades for the week were done.)

As you can see, I kind of blindly went into this trade without a plan. But now I have learned from my mistake. The third trade was the only trade that I actually had a plan for. As you can see the stock had a top at $6.95 and everyone wanted it to hit $7 dollars. Right when it hit the yellow resistance line, I went into this stock and sold it on the pull back.

What I learned from today.

Always have a plan. 
      - You always want to have a plan before you enter any trade. I just got too  greedy and wanted a piece            of this damn pie!
      - Always know what price you want to enter at and better yet what price you will exit at! Do not change          these points unless a new support or resistance line form.
      - Know how you want to trade this and always have a setup planned. The first two trades for me were            really bad. Luckily I profited from the first one and the second one I knew I screwed up and exited the          trade as soon as the price started dropping.
(This was my P/L for the day)

For those of you who are wondering what company this is...
"Trade the ticker, not the company" - Nathan Michaud