Friday, November 11, 2016

My Best Single Profit Day Off of Just Scalps in over 18 Months!


The stock gods have responded to my prayers! As you guys know, I've been going pretty crazy from the action, or rather INaction in the market and nearly had to check into a mental institution many times to check on my sanity.  But today was a day that reminded me why I chose to trade for a living. Making loads of money in very little time while I'm sitting on my ass in the comfort of my home in my underwear.  How many careers can you think of where you can do this? Hell even if you were a low-end athlete you still have to put in a lot more hours of work than this not to mention risk getting seriously injured.  I feel truly blessed.

Unfortunately, since I was so focused on trading i wasn't able to record any live footage so I'm just going to write this blog post posting my game plan and thought process in making these trades so that way you guys can extract something from this.

As you guys know I love longs.  Why? Because...
  1. More volume, we have tons of traders speculating on both sides, buyers and sellers (compared to slow short days where it's basically mostly shorts) The dollar volume will be higher which means more liquidity which means you can fill more size.
  2. Bigger moves.  Even if you're strictly a short seller, wouldn't you want to short these POS at higher prices?
  3. Action that lasts all day as opposed to just the first few minutes.  When the stock stays in play for the entire day or even multiple days, we have opportunities all day.  On the slow days where the only plays are the quick pop and drop shorts, you got only one shot at it and if you miss it you're eating big macs for dinner that day...
  4. NO NEED TO SPEND AN ARM AND A LEG ON BORROW FEES!!!  Since the best plays are longs, you don't need to spend on shorts needlessly.  Duh.

I was able to find PTCT off of the Trade-Ideas gap scanner. 



Based off the Premarket support and resistance I decided the game plan was:

·         Go Long against 10
·         Go Short medium size against 11.3-11.5 and bigger size against 12.5.


The stock washed to 10 so I decided to go long about 20,000 shares with a 10.4ish average.  However I missed my sell at 11 as I didn't get filled and ended up selling on the 2nd candle on the way down minimizing my gains to just $2,500 as I didn't want to take a chance that the top was in and the start of the dump was coming. 

Upon seeing 2 nasty upside wicks in a row, I decided to switch biases to short against the top of the wicks around 10.5-10.6 for a 10 washout.  I shorted 20,000 shares with about a 10.4 average and the stock did drop to 10.1 but eventually reversed and I stopped out on the VWAP cross for a -$3,300 loss.

Then I decided to switch back to long once I saw that lower highs were being made and VWAP was reclaimed with a hidden bid prop refusing to go away.  I went long with about a 10.5 average against 10.4 which was where the bottom of the wick of the lower high candle was plus where the bid prop seemed to be, 20,000 shares again and this time I made sure I got the sell in and sold around 11.1 for a massive win of almost $12,000. 



So just 24 minutes into the day, I was up about $11,000, which was already considered an epic day. 

But I wasn't done.   

DRYS initially would have been my focus had PTCT not had the most volume at the open as I'd figure it would get an SSR bounce if the MMs did the textbook washout to trigger SSR and then rip it on the shorts.  However, I didn't expect that they'd be able to rip it all the way over yesterday's highs.  The shorts were clearly fucked here at this point, slap on the halt for good measure to make them even more anxious and we have ourselves a play. 

The plan for this was simple:
  • Long any washout off the halt resume against 15 (previous HOD) for a massive squeeze towards 20



 Very similar set up to my KONE video, albeit that was at the open.  If you haven't seen that video watch here: 



DRYS opened and ripped to 17.32.  Shorts were in deep shit here, if the next dip held any price higher than 15.  The stock had halted at 16.06 which I watched for a possible stall area to load.  I decided to load up half size in the 16s with the thought that I'd load up full size if it dropped to 15.  I eventually only filled 7,000 shares in the mid 16s and get a sick rip selling near top tick after selling some stalls in the mid 18.7s.   I filled most of it at 18.6 and slammed the rest in the low to mid 18s, banking over $12,000 on this trade in just 5 minutes!  Now we're at the 27 minute mark into the day and I'm up nearly $23,000, which is already a personal best in terms of a start to a day!



But NO...I STILL was NOT done. 

Our good, but not forgotten friend FNMA, a stock that has been so kind to me in the past.  A stock that helped provide the funds for me to purchase my beloved whip, the 370Z.  It wanted in on the action.

I was watching FNMA as it ramped to new high after new high, but I couldn't chase as that's against my rules.  I needed a dip to get in or I was simply just going to wait for the dump.  At around 10:20AM EST, I started to lick my chops.  I haven't traded an OTC in awhile and although I realized the volume wasn't as epic as the good ol' days, I knew I could shake some money out of this piggy bank off the bounce.

If you want to know what I mean by the Good Ol' Days, watch this video: 



The plan here was:
  • Go Long medium size against 2.75-2.8 first support level  from the intraday chart
  • Go Long Bigger Size at 2.6 (previous day's HOD)
  • Go Long even Bigger Size at 2.4 (major resistance level from previous day)



Unfortunately the stock didn't dump to 2.4 or 2.6, so I just took a small trade 25,000 shares at 2.82 average and sold it at 2.96.  Didn't want to overextend myself and risk ruining my day so went for the small win.  Adding $3,600 or so more to my already crazy day.


What an epic day.  Never had to hold any positions for more than a couple minutes either.  Nail and bail, baby.

So there you have it guys.  

How to make $26,000/hr in your underwear sitting on your ass at home.  If there's a better and more efficient way to make this much money in this little time, please let me know.  ;)

#TradingIsEasy 

11 comments:

  1. Madaz, but it could wash 9.80-10 and breakdown lows. What was your reason for long if not just support area ? Positive news or prop bids, high % of inst.owners ? Thanks a lot and congrats

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  2. It washed to 10 already and wicked there so it was a good buy against 10. The next 4 candles in a row on the 3 minute also did not break 10, at that point it was very solid support so i was very confidently able to buy against that 10 level. There also definitely a bid prop there supporting it.

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  3. Madaz, when u got the avg around 10.5 what was your risk, and didn't you use a hard or mental stop?

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  4. there was bid propping around 10.4. I would have be probably sold or reduced position size if that broke just like how I stopped out of my shorts at 10.6 on that VWAP crack

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  5. Madaz, why do you mostly use the 3min candle as opposed to the popular 1 and 5? Any blog post on this? Thanks.

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  6. Thank for a nice informative write and for your time.

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  7. Also curious about the 3 minute.

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    Replies
    1. he talks about 3min in vids, not as much disturbance

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  8. Your blog is very nice,Thanks for sharing.

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