underground trader style

I must say, I have been doing this Underground trader tactic at around the 10.45a - 11am correction period. So far I have really had few losses, it is a different style, mostly I need to be patient and kind of ignore stuff that I would use to bail on my other style. It is a bit more objective because it uses and indicator, but, it also needs some finesse and experience. As I have noticed before, the 3min entry was also good for the 8min and 13min stochastic move, so I exited this trade too early, but I am still getting the hang of this. Overall this tactic is working very well right from the get go so that is impressive.

Summer trading:

There was no summer trading today. But, I do recall that some of these 3 day weekends will cause some slower action around them.

Trades from today:

Today everything went my way. I am starting to see there are two reasons for this. First is that today was a decent day for my style. The second was I was following my plan for the most part, still suffering from not getting larger gains but because of the number of winners it was ok anyway. The problem comes when market conditions are bad and I try to trade like I did today. The reason I will over trade on days with few decent gappers or low volume or whatever, is because I can't accept that some days I can't really make much gains but instead those bad days I really need to accept a small loss or a small gain. But, I have some sort of poverty mentality so that I think that one day with a loss or small gains means I am not a good trader. What I need to do instead is to not have larger losses or not churn on those weak days, and on the days things are flowing my way I should try to make a lot of gains. I think I can smooth this out if I have some other tactics that work a little better on the choppy days, like the underground trader stuff, or the momo reversal stuff or maybe something I don't know yet.

 

The problem I have overall is that the way I trade now really barely merits increasing size or trying to trade for a living. I don't know when this is supposed to change, other things in trading simply took a long time and a lot of experience. Meanwhile, I will continue to work my three part time jobs. Recently I got health insurance for a great price from this NY state program, so, at least I am no longer in risk of financial disaster from some illness or accident. Another step forward would be to buy a house for cash, but that is a ways off.

Trade today:

I spent four days in New Castle DE it was very nice.

Lousy trading:

I should be chilling on days like the last two days. I had some warning because the gappers list was kind of slim pickings, but I traded full tilt instead. I want to learn another tactic that is more immune to these days, and try to keep this stuff for those times when it is easier, which seems to be during earnings season for one thing, and for sure not every single day.

 

ZMH: This was the best trade, and it rinsed me up to 68 before dropping under 67. This was not the best type of daily or 60min chart.

 

AGYS was some garbage gapper that I really have no business trying to do anything with. I managed to get rinsed like a sucker before it did drop. I should've done my early exit on this when it reversed hard off of 10 at 9.52am.

 

PRGO shows the drawback of this exit. This never hit my stop (which was too wide anyway) and then it dropped later. Of these three trades so far, AGYS at least was a gap out of a consolidation, but it was such a thin junk cheap stock. Both PRGO and ZMH were already on the move down, so it's harder to play these since they do have a chance of a larger reversal since this is not the first day out of a daily or 60 minute base.

 

CI did have a decent daily or 60 min. Again my defensive exit was just me getting rinsed. There was a chance of another entry later, and considering I lost a small amount on this try, it would've been decent to get in at the breakdown at 11am.

 

WRNC was an avalanche but this setup had a big drawback in that there was not a long base leading up to this move at 10.21a, so this was much more of just a rinse down. I exited where I did by accident and then it was already starting to correct up, I probably would've taken a loss on this as well.

 

CSUN was another junk stock that sort of seems like a decent daily and 60 min, but look at the way it trades, better to avoid this junk. Especially with 11 resistance right over head, so there was not a decent chane of good risk reward, which at least ZMH had.

 

FSYS this was just a desperate trade. In my dreams it was like a cup with handle. I just got hammered on this like a newbie sucker.

 

BDX I was again sort of desperate, I thought this was this thing were after 3 waves down, there is a 4th wave that often fails to continue lower and instead reverses up. So in my daydreams this is what I bought. Another loss.