180 [Lots of setups triggered this week but will they have good follow through? Aug 21, 2020]

  • FSLY went long midday yesterday, took out hods, felt like I was chasing so only did half size [16kshares], made a huge move, straight up another 7/8% after I bought, that’s what strong stocks do, you buy them you feel like you’re chasing, then they go straight up, that’s a sign of strength. Surfed the 10/20day, then it gapped down on earnings had a little bit of a flush, undercut the 50day and started surfing the 50day. Unfortunately it gapped down so it was kind of a wide candle, would have been better if it hadn’t gapped down and opened at 80 or something so then the candle wouldn’t have been as wide and I would have done twice the size I did.
  • AMD also bought midday, bounces perfectly off the 20day, then on the 60min took out this range, that’s where I bought, using this low 81s as stop, not lods that would be crazy.
  • AMD was a better entry yesterday, when it bounced off the 20day perfectly, and then it took out this tight range on the 60min. I bought it just as it broke out of this range and I had a very tight like $1 stop on it. It didn’t really breakout on the daily yet when I bought it, but it looked like it was gonna break out of this range on the 60min. This is why you use a combination of the daily and 60min. I think you should start with just the daily then add the 60min after a few years when you’re profitable, bc the problem with the 60min is you’re gonna get a lot of false signals.
  • TSLA also added yesterday 1910 [1600shares] when it took out this 60min trendline, looked exactly like down here, TSLA does that if you go back this year, it’s exactly how TSLA trades, takes out these flags, it’s a very technical stock. It went straight up, sold like half of those adds into close and some premarket. Thinking TSLA could be a short here, gonna sell most, locking in all the adds here, back to 1100shares.
  • PDD, forgot they had earnings, went into it almost fullsize, probably should have sold half into close, but forgot they had earnings, now it’s gapping down. New stop is premarket lows, bc if you look at it technically, it undercut the 50day in premarket, good chance this thing reverses back up to 90+ intraday, technically it’s trading well, even though it’s down in premarket, looks like it may have found support on the 50day.
  • SOHU is a really beautiful setup, this thing is up almost 200% in the past 3/4months, kinda liquid too more than 10M dollar vol, should be in your scans, ADR 10.2%, really beautiful setup.
  • SHLL, congrats to those who bought off this rangebreak, really good looking setup, exactly what you want to see. Big big momo stock, pulls back, finds support on one of the key MAs, starts building hls, builds a tight range, look at how tight the day before the breakout was, and then it has a breakout, a clean breakout that goes straight up. This is exactly what you’re looking for, this is an ideal trade.
  • Yeah OTC stocks are also very technically friendly, you can get some insanely perfect setups, but OTC haven’t really been the game in town for many years, OTCs were back hot when I started trading up until maybe 2013/2014, after that OTCs have been pretty much dead, that game is long gone, no volume. Yeah OTC 2013 FNMA was insane.
  • Lots of things following through, just like that, that’s why you gotta be in the markets you can’t go away bc things are not following through bc you never know when things are gonna start working again, you gotta be there, you gotta be there, the market doesn’t trade on your schedule or feelings, you gotta be there when the market’s ready not when you are ready.
  • OSTK on the 60min is testing the rising 20ema, if it loses that, that would be the first sign of weakness for this stock in a while, could be a potential short entry. Just shorted 20kshares, see what happens, if it reclaims the 20ema really quickly I’ll prob get out, if it can bounce and reclaim vwap. Bc this 20ema is not to be played around with, if it finds support there, there could be some insane buying, don’t wanna be on the wrong side. OSTK, this is a stock that’s up 4000% this year, now it’s starting to show signs of potential backside, starting to violate the 10/20emas, but the jury is still out, could very easily reclaim. Look how violently it reclaimed the 20ema, that’s a sign of strength.
  • RUN looks pretty decent, maybe 3.5*, I would prefer one or two more days of sideways. It’s building hls, it’s trying to breakout it can’t, not the end of the world, may be a good setup on it next week.
  • APPS, if you buy here you will never make any money in your life, that’s the name of this setup. On the short side, I don’t think there’s a setup on the short side either, it’s just grinding higher. If you look at parabolic shorts, you need something that one, is getting really really stretched, and two, is starting to show some backside.
  • What return am I looking for per week? You can’t look at it that was, you can take what the market gives you. But generally when I take a trade, on the short side I usually want 1:5, preferably 1:10 r/r, and on the long side I want to see at least 10x potential on my risk, preferably 20/30x, I don’t bother with 1:5 or 1:3 that’s a waste of time. TSLA when I bought initially in the low 1500s, I think I had a $50 stop on it initially, now it’s up $500, so it’s up 10x my risk. Those are the trades that are gonna make you big money, the ones where you make 10/20/50x your initial risk, that’s how you can have a 25% winrate and still make many millions.
  • The lower your winrate, the less you should risk per trade, if you plan on swingtrading like I do, you should never risk more than 1% of your account on any trade.
  • AAPL, more than doubled since march lows, just look at setups, these low ADR stocks tricky, there was a potential setup here, these kinds of stocks they’re more like grinders, they don’t have these clean breakouts most of the time, but look at how nicely it’s been surfing the 10/20day, very linear, this is what an institutional stock looks like. 2T amazing.


  • If you really gonna make it in trading, you really gotta want it, bc this is no joke man, you can lose all your money if you f up, you really need to want it and apply yourself.
  • Added read this first banner.
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