Jayron's Stocks Trades 15 September 19

Updated: Dec 29, 2019

Disclaimer: The charts displayed are meant for educational purpose. None of the content contained here constitutes a recommendation to make any investment. I am not responsible for any loss arising from any investment based on any information contained here. Readers are expected to perform their own due diligence before venturing in any investments.

Two topics are presented in this article.

  • Updates on closed trades last week (9 to 13 Sep)

  • Trading opportunities next week (16 to 20 Sep)


Last week trading results (closed from 9 to 13 Sep)

Legend

Entry price (cyan horizontal line)

Entry date (white vertical line)

Stop loss price (red horizontal line)

Take profit price (green horizontal line)

Short Stock: THC

Signal date: End of 2 Aug 19

Entry price (cyan line): $22.19

Stop loss (red line): $24.35

Preliminary stop loss (for 1st week of entry only): $23.37

Take profit (green line): $17.87

Feedback: Short entry at $22.19 and hit stop loss at $24.38 (-1.02R)

Lesson learnt: I set this rule that I will exit all weekly stocks 5 weekly candles after the signal candle. However, instead of getting out on the Friday of the 5th candle, I was lazy and decided to hold one more week and this stock turned from profit to stop loss. This trade taught me the importance of staying disciplined to the initial plan.

Short Stock: REKR

Signal date: End of 2 Aug 19

Entry price (cyan line): $4.07

Stop loss (red line): $5.45

Preliminary stop loss (for 1st week of entry only): $4.77

Take profit (green line): $1.32

Feedback: Short entry at $4.07 and hit timeout (after 6 candles) at $2.51 (1.13R)

Lesson learnt: Even though I made more returns by holding beyond 5 bars (i.e. 6 bars), it was against my exit rule (exiting by 5th bar after signal). Taking into consideration together with the stock: THC mentioned above, the net reduction will have been lesser if I exited all at 5 bars. Not all profitable trades are good trades.


Short Stock: REKR

Signal date: End of 2 Aug 19

Entry price (cyan line): $70.58

Stop loss (red line): $80.01

Preliminary stop loss (for 1st week of entry only): $75.77

Take profit (green line): $51.73

Feedback: Short entry at $70.58 and hit timeout (after 6 candles) at $60.81 (1.04R)

Lesson learnt: Same as above, even though I made more returns by holding beyond 5 bars (i.e. 6 bars), it was against my exit rule. Taking into consideration together with the stock: THC & REKR mentioned above, the net loss will have been lesser if I exited all at 5 bars. Not all profitable trades are good trades.

Short Stock: ACAD

Signal date: End of 23 Aug 19

Entry price (cyan line): $28.22

Stop loss (red line): $30.39

Preliminary stop loss (for 1st week of entry only): $29.22

Take profit (green line): $23.88

Feedback: Short entry at $28.32 and gap past stop loss at $41.94 (-6.28R)

Lesson learnt: Earlier in the year, I experienced a long stock position (Ticker:BCRX) that gap below stop loss and I suffered a 8.32R loss. You may refer here to view how it happened. This week I suffered yet another a gap loss but this time round it's a short position. I was holding a short stock position (Ticker:ACAD) and the stock gap up 60% overnight. As a result, I loss 6.28R in this trade. Although I was sad for say a few hours, I find this to be a good learning experience as I have experienced stock gaps in both directions (long & short). The most important thing I found out is that both stocks belong to the Healthcare Sector and Biotechnology Industry. They both also have a beta of more than 2. Based on this experience, I will exclude the Biotechnology Industry stocks with beta more than 2 for all my trades from now on.


Readers do take note: When stocks experience an overnight price gap, even with stop loss, it does not guarantee a close position at the stop price. Therefore, I always limit my capital exposure for each stock and keep my sizing for each stock low (less than 20% trading capital).

This week's trading opportunities identified

(To enter on 16 September 2019)


Stocks to go long: MFGP, TRUP, DESP

Stocks to go short: None





If you wish to see more similar trades done in the past weeks, click here.

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