Another week in the books! What a spectacular week it has been indeed. I hope everyone is had a Easter Weekend with Friends and Family. This post is going to be different from most. Firstly I will be discussing this week's past movers, with the addition of video lessons. Secondly I will give my rant on the idea of Loosing, which is not fan favorite. Lastly I will providing an update on my trading and personal life. Once again the video recaps will be below. Let's Dive Right In!
This past week has been relatively slow in low priced socks but I stress in every post there still tons of opportunity in the Markets. In addition as a Trader you must take full responsibility to know when the is an ideal setup that fits your personality. I'll save my rant for second part of this post. Firstly I will begin at the very bottom. Where true manipulation occurs. The OTC Markets. I just want to point out. I am not calling stocks on the OTC Markets complete scams, I couldn't care less about the company. As a Trader, yes I do take fundamentals into consideration. Although its essential to understand that Prices move before Fundamentals. Prices are in constant motion. With that said the Two stocks I will be discussing first are $EDXC & $BMMJ. I will providing my analysis on both.
I'll begin with $BMMJ. I am not going to discuss the fundamental aspect of this "company" nor I am going to criticize them. Although this press release here is quite hilarious to say the least. I am going to provide my detailed analysis about the Price Action. As I have emphasized in the past that Price Action triumphs anything. To avoid any confusion I will providing a chart below along with a detailed video lesson.
Above is a an 6 month chart of $BMMJ. There not specific news to warrant the uptrend as the article linked here the Company has no idea what's causing the uptrend. It's quite hilarious if you'd read the commentary. The overall chart long term outlook is ideal. As I have mentioned in the past OTC's act in their own unique way. This would a great OTC breakout pattern to buy above the technical indicators. Ideally with $BMMJ the time to buy would have been once breached the $1.00 whole mark. On another note the market gave you another opportunity to buy along the dips, but dip buying has specific built in risk as I have stressed in the past. More likely than not I would have sold considering that is suffered two red-days in a row as that's a major momentum indicator. As you can see in had a nice rebound after the first initial Red Day which is huge sign of strength. Now as you can see in the chart we have the same situation with some variation. As you can see based on the candle wick's the first major red day was a nice sell off. Followed by a second red-day. In my opinion I would love to see it rebound for a potential re-short, but it's holding key technical areas as you can see. The downside is that $BMMJ is not as volatile as I would have liked, but we'll see what the Market gives me.
Secondly $EDXC has been a Supernova chart pattern which you should know. If not I encourage you to study up. This company is in the Cannabis sector which has been a hot sector this past year. Especially the past October the Cannabis sector was going absolutely insane. I couldn't care less about the company I base my thesis of the Price Action solely. As the chart above it cannot SUSTAIN itself. I highly expect to get a major morning panic or a major rejection off the Dollar level If* it can reach those levels. As every Supernova ends the same way. There has not been no news to warrant the up-trend. Which leaves to conclude that $EDXC will likely have a major pullback this upcoming week.
Last I will $MBIO was a fucking beauty. Excuse my language,but this one was fully predicable. i knew that I should have done a video recap before next trading took place, because I was dead on to a fucking tee. Again It's OK. The same old pattern will come back again. Although $MBIO did have some key fundamental aspects which I took into consideration. $MBIO being a bio tech I took into consideration the overall big picture. In my opinion Bio-Techs are extremely difficult to have a long term hold since it's virtually unpredictable. Of course unless you have inside information which would help dramatically. My point is that a Bio tech company typically have am major product which they are trying to produce. Hence why it take a long time for these companies to have a major spike. Typically when they report Clinical Trials such as $MBIO did, we can see a dramatic spike. Again it's all about expectations, and the results of course. In My opinion I judge my opinion based off the price action. I let the Market tell me it's worth my hard earned money. And $MBIO was worth it all. The news of $MBIO can be found here. I Will go into detail here, but make sure to refer to the video recap. Overall it was great results, but was very similar their publication of their prior test. The intraday chart is music to my ears. Take a look. Again I have Major reason behind why $MBIO has a major sell-off which I will go into much more detail in the video recap below.
In a nutshell those three tickers are the recap. I don't want to add in unneeded information that would not benefit you. Since I have you here. I am going to branch onto the idea of Losing. Not a fan a favorite as I have mentioned in the past. There are a few reasons behind this scenario, which I will be proving my insights about. In my opinion there are 5 main reasons who Traders continue to loose in the Markets, which I Will be discussing below. Again you find that it may sound Repetitive. And to that I say Thank You. This is not Fucking Rocket Science. Common Sense is NOT Often Common Practice
Cut Losses Quickly: This one should be no surprise. Rule #1 is always to simple cut losses. When your Thesis is wrong you get the hell out. Holding an Hoping is not a strategy . Don't be a deer in the headlights like most individual Traders who simply ignore the rules. You don't have to reinvent the real, the GAME is set. The rules are set. As a Trader is often most Disciplined who excel in the Markets. This a two step process. Predefining the risk is one part,but sticking too the game plan is another. This point is where majority of Trader fail too understand. They are afraid to be wrong.
Being Right Wrong : This one is a big one. Most often than not Traders are afraid to wrong, which blow my mind. There's nothing to afraid about if your stick to rule #1. Cut losses quickly will keep you from potential disaster in any trade. Secondly being WRONG is an essential part of Trading. We are not perfect, we are Human. The day will come when we have robots trading, that will end. Of course I'm only trading. The best part about loosing is that you learn allot about yourself as a Trader. Are you going to be the trader who carry's a loss onto the next trade. Or are you going to be in the Now Moment. The best Traders are in the Now Moment.
Ego Trip: This ties into the idea which I just mentioned. Leave your EGO at home in the Markets. The Markets is a far superior force and will humble you when you get cocky. The Market does not care how much you have made or Know. One trade won't make you,but one trade can break you. All it takes is one trade to wipe you out of this game. Point is too leave you EGO at home.
Taking Full Responsibility: Again Great traders take full responsibility of every trade. In Simple Terms Winner know they are responsible for their results, looser are not. It's OK to be wrong, it's not fine to stay wrong. Take responsibility and get out when your Thesis is not going as planned. In addition track your trades. Due your diligence as a Trader, track your set-up.
Edge: Tracking has played a key role in my Trading. Market statistics are a great tool for any Trader. Of my own I have a series of excel sheets tracking the Market data in order to give me some insights on a particular set-up. Before you start tracking, put strong emphasis on what your trying to achieve. For example, if you were curios to see how breakout's play out. I would track breakout's and see how they did the next day. The simplest in my opinion is the OTC first green day pattern. It's a high odds set-up that they will likely gap up or remain green the second day. Again it's not an exact science,but Market data can give your major insights.
Update: Happy Easter everyone, I hope you are having a great weekend with Friends and Family. This upcoming week is going to be awesome. It's Avengers Week. Yes! Avenger's Endgame with premiere this upcoming Thursday. Forgive me for going of topic,but I'm 19 so give me a break. I am looking forward in watching Endgame with a great friend. The Markets have been relatively slow this past week with the exception of a few Tickers. I am still waiting for the next Hot Sector to strike,but I must remain patent. I will not force any trades. It has been an amazing Journey to this point. They say that it take 10,000 hours to master a skill. If that's the case, then I am on the right track. I began learning about my obsession July of 2018. I understand that it's not a direct cause and effect. I have been preparing to go to War. Loose the Battle to Win the War. I hope everyone has a great week ahead. Understand that time does fly quickly, but your the pilot. Be in control of yourself. Train Like a Pro. Act Like a Pro. Work Like a Pro. I 'll see you next week. Go Thanos!