Trading Recap 10/22/15

Well today was another winner for me (I'm so used to saying loser in this opening sentence that it feels weird). This would make the first time I had two winning trades in a row, I believe. Kind of sad yet good at the same time. I am glad how I just went for the trade though. It was a setup I have seen time and time again and knew others wouldn't be watching so it wouldn't become crowded. That allowed me to add in on instinct. What I mean by that is I knew deep down that this was a great setup and that I have seen how this plays out most likely so I added without thinking about having any BS "confirmation" etc.

White arrow is entry followed by exit.

CANF: I saw this gapping up but on low volume so I put this on the backburner. However, at the open I saw that morning stuff candle that I have seen time and time again and knew this was a good setup. I said this looks great and I went right for it with risk on $4 over/under. I didn't have the best entry at $3.85 but I wanted to get in there. It went slightly against me but came right back down and I knew it was over so I added again at $3.85, something I have never done before and it made nLODs and from there I waited and made sure $3.80s didn't reclaim. I had a feeling this would be an all day fade so I tried to be patient for the $3.70s crack but it looked like it reclaimed after flushing to $3.68 and coming back. I wanted to hold it for the rest of the day as long as $3.80s didn't reclaim but I had class to go to and didn't want to worry about it and rather take the win, plus the volume was shit. I covered at $3.74 so I got a small chunk of it but at this point profit is profit. Going for the small wins, even starting with 100 shares and not caring about how much money I make, only that I am profitable seems to have helped a lot with my trading. I hope to continue the momentum I have going forward. The small wins with consistency will add up over time.

RLYP: I was thinking of shorting this for a continuing fade but went to CANF instead since it seemed like that no brainer trade. Shorting would not have worked unless you took a quick scalp. In this case, the drop might have actually been overdone since it faded around 50% from the premarket highs. With CEMP it faded around 1/3 so perhaps a good rule on these is if it already fades 50% from the prior highs, it might be done for now and you can either avoid it or try long if a setup shows up.

VRX: I wanted to put this note here as a reminder as something to remember going forward. Nate had a great trade thesis on this and it worked out fantastic. Citron was supposed to appear on Bloomberg and Nate believed that many sold for fear of what would be said in the interview. Most likely, he correctly assumed, that nothing new would be revealed and from knowing how Citron works that is a fair assessment since he usually repeats the original evidence and adds nothing afterwards. He went long dips in hopes of getting a rebound to $105 as long as nothing new was revealed. Nothing new was revealed and a very nice bounce commenced.

Things to work on:

1. Nothing for the CANF trade. Maybe I could have waited for a pop which I wanted initially but it looked like a nice all day fader so I was ok with going in and chasing a little. I added after it popped and it looked to fade more so I think that was ok.
2. Track these gap downs even more and see about the 50% rule.
3. Note the VRX scenario for future reference.