Week 66 and Beyond!

  Hey, there I hope you had a fantastic week. Another week is in the books! Week 66 is ahead. This past week has been great overall, just taking it day by day and trying to improve on my Craft. Last week I only had one winner, but most importantly that one winner outlasted my 4 losses. Again your goal as a Trader is to focus on Risk Management. Just like at a Casino, your job is to beat the dealer to say. Outlast your competitors. The only goal you should have with a small account is to stay in the game, slow and steady wins the race as my Guru would say. Don't focus on the P&L!  I know that the money is why the vast majority come into the Stock Market, but it's a gift and curse. There is a reason why 90-95% of Traders don't find a state of consistency within the Markets. Understand that Trading is a unique industry. It takes NO SKILL to put on a Winning Trade. You have a 50/50 chance of the probability of coming out of a net winner! No SKILL! Just a click of the mouse! What takes skill is outlasting your competitor, have a state of consistency within the Markets. Doing so takes time, but I assure you the end is well worth it. I have not found it, but that is fine, I am only 20 years of age. Markets will be there for the rest of my life. I am just grateful that I starting this at 18! It has been hard sitting on the sidelines, but I have been building my Foundation and my Methodology. Yes by means of Paper Trading, but again we all have different Processes. I do intend on opening an account soon, likely in early 2020. Yes! I know that many would have thrown in the towel by now, but again I never got into this game for the Money Aspect. Once I was introduced, I was just hooked. It's like solving a Puzzle, but I know that this puzzle will be unsolvable. That is what excites me. I am looking forward to another wonderful week ahead. I thank you for taking the time to read this. Always the Video Lessons will be Below. I will see you soon!

 My Trading Process: Below I am going to describe what I look for when to enter a stock. Again note that Trading is not an Exact Science, what works for me may not work for you! It's more of the guideline! Again take it as you will and try to gain something from it. I will see you soon! 

1.Focus on Big % Gainers: This one should the obvious one! I know too many people that focus on non-volatile stocks! And it blows my fuck-en mind. Understand that you need Volatile stocks, yes they are riskier than your higher blue-chip stocks, but again the higher the risk, the greater rewards. Understand that trying to grow small accounts with Blue Chip stocks is going to be more difficult. Focus on the Big % Gainers. And no excuses, People always say I don't have access to the Big % Gainers. That's Bullshit! It's called the fuck-en Internet! Yes, having platforms like StockstoTrade or Equity Feed gives you an edge over others, but it comes at a cost. Again ask yourselves, are you going to treat this like a Business or a Hobby! 90-95% of traders try to be coupon clippers. Fuck that! It's all Market Tuition! If you are cheap and don't have anything, there is still plenty of sites that give you the big Percent Gainers. Such and Yahoo Finance, or Finviz. 

2. Focus on Tickers that find your Niche as a Trader: Once you find the Big % gains, understand that you don't have to trade all of them. I'm not saying you can't, but in my opinion, prefer to select the one with the highest odds. Again Trading is a unique industry, cause what works for me may NOT work for you! It's not a direct cause and effect. Don't play follow the leader mentality! Focus on you. I know that in every begging you may not know what your set-ups are, but that is why I an advocate for paper trading. Test and refine overtime in pretty of success. 

3. Put the stock into the Overall context: When I see a stock that interests me, I take the overall context. Why, How What. I want to get the overall sentiment of the stock. Again I focus on the TICKER NOT THE COMPANY. Nate said it best "Trade the Ticker". I am not saying to ignore the fundamentals, because that does matter, but again PRICES MOVE BEFORE FUNDAMENTALS...PRICE ACTION IS KING. Firstly I look at the Chart, Look left to predict the right as Nate would say. At least I go back 1 year, the main thing I am asking myself is "Has this Stock ran in the Past." You must always respect former runners, they can always run again, it's in their DNA. As well as volume and how the Trend has been up to the time looking at it. The Chart is not everything but is a major factor, it's Pattern Recognition. Secondly, I ask Why is this stock up? Again I don't primarily focus on the news, but it's still apart of my process. Ideally what interests me are Partnerships, Earnings, Hype Plays, and Bio-Techs. Again I am not going to go over each of these, cause I can do a whole post later. Thirdly I since we trade the most volatile stocks, I check the FLOAT. The total number of shares that can be freely traded at the Market. Again the Float is never going to be exact, but you can get an idea. How do I find the Float? Look in the OTC Filings! Keep it simple guys and gals! I go back to the recent 10-Q / 10-K and use CTL+F and type the phrase "outstanding." You should be able to see it pretty quickly. On some occasions, I may use a 424B form since that is where the Offering Price and Diluted properties can be found. The FLOAT is a Major Factor for us Traders. Think in terms of supply and demand. When there is a low supply with an excess demand what do you think will happen! Look at $SES $BIMI $BNGO $OPTT $BPTH $DRY $SHIPS $IGC $NBEV $WWR $TOPS the list goes on and on. I categorize a low float stock that is under 10 Million, but again it's not an exact science. Next, I check out the Filings for any skeletons in the closet. Understand that we are trading the worst of the worst. What I am looking for? Ideally, I am looking for any potential Dilution. The same process as with the Float, I use the Command Key and search for key Phrases. For example, Offering, dilution, warrants, ATM ~ at-the-market, Unregistered Sales of Equity and Use of Proceeds. I typically go back for their recent 10-Q / 10-K. As well I am looking for any 424B Forms or an S-1. The S-1 is a shelf, if a prospectus, it's not live until the 424B if filled. Again this process may seem like it takes a while, but rinse and repeat and it becomes second nature. I don't spend too much digging since the more I investigate the more likely I will add to my confirmation basis. Ideally 10 min Max. A quick note, be very cautious is you attempt to Long a stock, that has a history of conducting Toxic financing in the past. Just like you, These "Companies" goal is to stay in the game, by any means necessary. So I do encourage you to just check you the flings if you do intend to Swing a Long overnight. Lastly, the most important indicator that I use is the PRICE ACTION! At the end of the day, the only thing that matters is the fucking Price Action! What does the daily trend look like? What day of the week is it? What's the volume? Price Action is KING!

4. Always Know the WHY: Again we all know what we do, but most do not know WHY. Trading Randomly will only lead to Random results. It all goes back to finding your niche as a Trader. If you ever feel uncomfortable in stock, I would encourage you to simply exit. It's much easier to get back in that it's it to get out. Fuck your EGO! 

5. You don't have to Trade every day: This one is very underutilized. Look I don't look to Trade every day. I don't wake up expecting to Trade, I have a game plan yes. But again I will only act if those indicators are hit. As well depending on what the Big % reveals. If there is nothing that fits my personality, then I simply do NOT Act. I don't Trade to Stay Busy, trading to Stay busy will cost you money. Again is this a HOBBY or a BUSINESS to you. It sounds counter-intuitive, but trading less can help you in the long run. Trading is reality is Boring, I am like a Lion, I only come out when I see a baby gazelle. Or a Gimme Set-up. 

Update: It has been an amazing adventure to this point in my Trading Process. I  know that it takes time to create lasting success. I am willing to burn all bridges to attain my desire. There are no such things as a Work-life balance, there are only work-life consequences. I know that likely no one will read this, but that's fine. I never did this for anyone but me. I was simply obsessed with this game. If anyone does end up reading this, A big thank you for being apart of the Process. The end of October is here! I will see you in November! 

Disclaimer: This blog has a term of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.


Curiosity Trader

  • Twitter
  • Facebook
  • Instagram
  • YouTube

©2020 by Curiosity Trader