125 [Millions in profits and how to quickly switch from net long to net short. May 27, 2020]

  • W, shorted yesterday late day, when it was getting obvious it was closing below the rising 20day. And today it’s gapping down while the market is up, so showing some interesting rw here.
  • NVAX added to short, was a little bit of a chase. They had some news and it can’t even go green on this news. It’s losing the 10day, I think it goes back to $40. Gonna use today’s highs as my stop on all of it.
  • MRNA short gonna size down big on orhs, 51.50s. This thing is straight down, need to cover some [up 5% on adds]. I think this is gonna go to mid 40s, I think the bounce play may come tomorrow. Ideal scenario if it goes to high/mid 40s today, then gaps down tomos. That would be a 5* setup.
  • Raising stop on FAS, CCL, have to be very aggressive with profit taking here. Just don’t trust this market at all. Building a little bit of a short book here, maybe I’m too early but things are starting to pull back. I have a lot of short exposure, so I’m fully hedged pretty much. I have as much short exposure as I have long exposure. It’s happened so many times before that I’m heavily long and the market pulls back and I give back a lot of profits, I just refuse to go through that again. We’ve been euphoric for a while, but markets rarely keep going straight up. We saw some warning signs yesterdays with the biggest leaders pulling back, and some of the sh*ttiest stocks like airlines and cruiselines starting to rally. They were starting to chase the laggards and sell the leaders, that’s usually a warning sign.
  • SE need to sell some, looks like gonna have a hard pullback here. It has a lot of room to fall, I still think it’s gonna go higher but need to protect. If I hadn’t been long this thing I probably would have gone short.
  • FSLY, I’ve already sold about 1/3. If this thing closes below the 10day, I’m gonna sell another 1/3. LVGO, if it closes below the 20day I’m gonna sell all my shares.
  • Fed numbers and things like that, I don’t pay attention to that stuff.
  • SHOP this was a missed opp yesterday. Maybe orls, but especially when it took out this consolidation on the 60min.
  • You guys are scalping in and out, I’m just holding and not worrying about it. That’s how trading should be, that’s why I don’t day trade anymore, there’s no point. Swingtrading is just easier, you don’t have to work as hard, but some people really like to work hard, I’m just lazy. Exactly, set it and forget it. I get it, with a small account you can compound faster daytrading, but with a big account it’s almost impossible daytrading.
  • It’s scary holding through pullbacks, it’s hard, especially when you’re in size, it’s very easy to get shaken out. Always sell some into strength, and sell down to a point where you are not scared holding through the pullback.
  • If you’re gonna trade for 8-20% targets, you need to sell when the stock is up 8-20%. You need to sell most of your shares. I’m not sure the IBD strategy is the optimal one. If you have a smaller account you should probably go for those 10/20% movers, and just sell into strength, and just do a lot of trades.
  • I’m getting better, I’m getting better, that’s the most important part. It’s all about constantly improving, learning from your mistakes, learning from the pain of losing, or the pain of giving back profits. I think emotions are a very important part of trading. I don’t buy into the bs you should be emotionless, and you should suppress your feelings, I think it’s all bs from people who don’t even trade or are not successful traders. You should be emotional, but you should channel the emotions.

Misc:

  • You’re not being rude. You would be being rude if you asked me how big my d*ck is. Being on a trading stream and asking about scans, that’s not being rude.
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