A new month is upon us. The first week of April is in the books. This past week has been fantastic overall. Today I will be going over the trades which I made for the week. In addition, I will be providing video recaps below. Let's dive right in.
The overall Market has been somewhat boring, to say the least. I'm not sure if that makes sense, but every day there is still an opportunity. As the Markets are in always constant Motion and it's our job to recognize what suits your area as a trader. Remember that every day is another day, the Market will still be there. Often the best trade is to not trade at all. Cash is King. Staying Liquid is an option, but sadly not an option for most. Wait for the ideal set-up that the Market gives you and strike like a sniper. As I have mentioned in the past. As a trader, your job is to act like retire traders, and only come out of retirement when there is a play that you couldn't afford to miss. The point I am trying to get across is the idea of Over trading. Yes. I am sure that at some point in your trading journey you have been a victim of over-trading. The key is to recognize it before it gets out of hand. The only way over trading ends it by bleeding your account. Unless you recognize that you're doing so in the process, which majority of Traders don't do. This past week, I have been a victim of over-trading. Or I think so. I would not say I am over trading, but I am expecting the market to give something if that makes any sense. As I have mentioned in the past, any unfulfilled expectations create a sense of sadness. The Market owes me nothing. Remember it's not the smartest who make it, it the DISCIPLINED. The marker can humble anyone any moment they don't stick to their game plan. I have been struggling with this, as I will share below.
This week there has been one noticeable trend, at least in my eyes. Reverse Splits. Meaning that the total outstanding number of shares will be drastically reduced depends on the reverse split. Typically Companies will conduct a revere split simply because their chart is horrible or for other reason that I'm not going to discuss. The major point is that when a reverse split occurs is falls under a low float. Which has been the hot trend last month $BPTH $OPTT? What these companies have been lately being conducting the reverse split then offering a positive news release. Which is very smart on their part. It's is somewhat like a legal pump to say in my mind. As Low floats can bee really manipulated. But I am not here to criticize the companies which I will discuss, but their price action only. I will give those insights in the recap below, so make sure you check that out!
Monday was great once ago lat last week. The same exact pattern, but different ticker. $ADXS handed me a great profit, as well as with Any lessons. As this was one of the reverse stock plays, which dramatically reduced the number of the shares float. $ADXS did have great new but unfortunately, the price action said otherwise. Again I go into every trade being unbiased. I wait for the indicators along with the Market expire to tell me to go long or short. Again it;'s great to have a forehand and a backhand. be able to go long and short, trade what is comfortable for you. $ADXS pre-market I was long-biased, as you will See in the live video and recap. I missed my execution which would have offered a great profit. I was not upset, as I knew the Market is in constant motion, and I have to wait like a sniper. I did get that shot. On the Short Side. Yes. I understand that shorting Low-Float stock scan be very risky, but the is nothing to be afraid of if you pre-define the risk of every trade. I simply shorted the technical Breakdown. As you will see in the chart. Former Resistance should now act as Support. But in $ADXS case that was not valid. Therefore I decided to go short since I knew the odds of Low Floats on day 2. Secondly, the fact that $ADXS is a bio tech company I knew that the chances of raising money were high. AS they stated in her filings. Guys read the SEC filings, everything you need to know is here. This was my largest trade of the week. In hindsight, I should have held, as they did what I expected. $ADXS raised via a public offering. I was Short from the Average of $8.62, end of the week is $3.89. I am not upset, as I know the market will always give me another opportunity as it did with $OPTT
Next was $OPTT which was another reverse stock split play. They missed positive clinical news about phase 3. Once again positive news but the price action was a different story. Yes, it was great news, but that is not what made $OPTT go from $4 to the high of $16. A stock that is Low Float coupled with intense short Sellers create high odds for a massive squeeze. As when short cover that leads to the stock rising, because it creates excessive demon short the stock. With limited supply, the stock can really fly if there is short trapped big. As in the past $BPTH and $HUNT has proven. $OPTT did squeeze, but not too epic proportion as we saw in the past.I was long-biased pre-market as I saw the news and the odd said this was potential spikier. I got long pre-market before the eight dollars whole mark. As I have mentioned in the past whole numbers are significant. I had a great profit pre-market I sold before the market open as you will see in the live video. The amazing thing is that the market handed me another opportunity to enter. ; At the exact same spot where I entered. $OPTT was a gap-reversal short got eager too soon, and once the bottom was confirmed at eight dollars the squeeze was on. I missed that entry as it would have offered eight dollars worth of upside. That's OK. Remeber that the market will give you another opportunity, be in the now moment of trading. Let go of the past, you can look at it later. For the time being be in tune with the Market and absorb the information. $OPTT gave me one more shot, on the SHORT side. I did not get involved at $OPTT was forming a classic head and shoulders, i wanted like a sniper. Keep it simple. I simply shorted the neckline. In other words the technical breakdown. I did cover before the market open, which again in hindsight it would have been great if I held. After-hours $OPTT conducted an offering just like I immunised. $OPTT conducted a $15 Million dollar offering at a purchase price of $3.50. Understand that when a company does an offering at a massive discount, it's the negative sign, they depart for cash As you can see in the chart below $OPTT go absolutely obliterated. Make sure you check out the recap for additional info.
Lastly is $OOIL. This stock has been giving me fits the entire week. As I have described in the past $OOIL is a classic paid promotion, or another word a Pump and Dump. I have done numerous post about Pumps, but $OOIL has been one of those black swan moments. I have learned numerous valuable lesson this past week about myself. I have lost well over a thousand dollars total from my $OOIL. I never had a losing position more than two hundred, but cumulative its well over a thousand. There are some major reasons why this is the case. Out of all the stocks in the entire stock market with $OOIL I know the endgame. Which is why I am having difficulty trading it. I am for sure not going to Long $OOIL anymore as that would be risking disaster. Shorting $OOIL has been my target, but it's the timing I very difficult. Never underestimate Stock Promoters. This entire week I have been over trading $OOIL. My emotions have been getting in the way. It's fine to trade with emotions, but it's not fine to let emotions change your risk management. I am short over the weekend, which could be very costly. I understand the risk that I am taking. Sometimes you have to risk some pain on Paid Promotions. I will report back next week.
Update: This past week has been great. This upcoming week I am going to take a step back trade wisely. I understand that the Market will still be here. Tracking every night I will doubt I will step away from the screen during Market Hours. This is the last week that I will be using Stock to Trade and transforming to the Thinkorswim platform. The goal for next week is to enjoy my time off while having a great time. Next week I have a lot of exams for School. I am looking forward to the Masters. I will see you next week.