June 2017 – Monthly Summary

  • Down on the month by (2.19%)
  • Started with $3,000, as of 6/30/17 @ $2,934.42
  • Five trades, total realized P/L: ($65.58)
    • FOLD +$5.99
    • IMGN +$64.04
    • DCTH ($0.31)
    • FRED ($151.85)
    • AVEO +$16.55

06-17 Trades

Takeaways

  • don’t put in trades past midnight when you’re not at 100% mental capacity
    • w/o the FRED trade I’d be up $90
  • don’t place a trade without confirmation (news, contract, price action)
  • follow your entry and exit targets
  • target a 1 to 3 risk / reward ratio
  • don’t hold and hope, that’s not a strategy
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Interactive Brokers PDT Notation – 6/29/17

You can find this information @ Account > Funds tab in the IB TWS mobile app.

FYI – for anyone else out there who is confused by Interactive Broker’s day trades left notation, the numbers represent number of day trades left from a T+0 to T+4 basis.

E.g. – if today is Thursday 6/29/17

(0, 0, 0, 1, 3)

  • T+0, Thursday –  0 day trades available
  • T+1, Friday – 0 day trades available
  • T+2, Monday – 0 day trades available
  • T+3, Tuesday – 1 day trade available
  • T+4, Wednesday – 3 day trades available given no trades took place on T+3

Trade #5 – $AVEO 6/28/17

  • Position: Long
  • Entry: 2.20
  • Risk: 2.04
  • Size: 500 shares
  • Risk ($):
  • Target: 2.35


Sizes into the morning dip with 4 x 100 shares @ 2.16 sold into strength shortly after. 

Tried to buy a dip later @ 2.30 6:58, but stock crashed down, tested support at 2.20 and failed, sold for a small loss. Overall, a positive trade +17

I played this perfect until the crash. Buy the morning dip and sell into strength.

Since I had four 100 share trades & my account size < 25k, I believe I triggered the PDT rule.

Now, how to replicate this trade consistently.

  • Perfect breakout after morning dip
  • Daily Volume: 23.5m
  • Average Volume: 3.1m
  • Market Cap: 231m
  • Sector: Biopharmaceuticals

Trade #4 – $FRED 6/27/17

  • Position: Long
  • Entry: 12.75
  • Risk: 11.75
  • Size: 150 shares
  • Risk ($): 150
  • Target: 14.15

Thoughts: steady fundamentals, strong long potential.

Sleepy, will continue updating post tomorrow (9:24 PM 6/27/17 – this is where I messed up…)


Stopped out for a $150 loss

lessons:

  • don’t place trades past midnight when you’re tired and not @ 100%
  • do not trade before confirmation. Had thought positive PR was released about merger between Rite Aid & Walmart, next morning, negative news, market also finished in the red for the day.
  • stopped out at risk level for a $150 loss.

 

Week 1 Recap: 6/19/17 – 6/23/17

Unrealized P/L: 78.45

Realized P/L: 0

Three trades, three wins.

I have not closed FOLD or IMGN because my targets have not been hit. I will cover half of my DCTH position (250 shares) to lock in profits tomorrow morning.

I plan on managing these three positions tomorrow and not jumping into anything new until Tuesday.

Week 1 Positions

Part of me thinks this is beginner’s luck. The other part thinks I made the right moves and started to build some good trading habits.

What did you do well?

  • sat tight and respected risk
  • did not give into emotions
  • prepared trade strategy the night before execution
  • knew my entry, risk, target, source / catalyst & strategy for each trade

Areas for Development:

  • focus on one or two strategies, be wary of “strategy hopping”
  • be prepared for internet outages, like with T-mobile this week. You can’t be in the dark for any reason, it’s dangerous
  • think about tightening your target / risk spread from entry
  • keep watching HTMM, you’re still new, don’t let a few successful trades get to your head
  • You are only as good as your last trade
  • You are a retired trader, only come out of retirement for perfect plays

Trade #3 – $DCTH 6/23/17

Position: Short

Entry: 0.212

Risk: 0.262

Size: 500 shares

Risk ($): 25

Target: 0.162 cover


Placed this trade, based on information from Tim Sykes video, DCTH is trash / a junker and is on the verge of crashing. Second half of a supernova. 5 cent risk reward spread on order.

3rd trade of the week, capped by PDT. Will close out my positions later today and do a week 1 recap.

Watchlist – 6/21/2017

Watched this video on the commute home.

Some takeaways:

  • $DCTH is the first supernova we have seen in a long timeDCTH1.JPG
  • My thought here is, this is going to crash because there is no catalyst
  • The current trend (based on sykes) is Junk that Runs.
    • Sympathy Plays seen in:
    • $ITKG
    • $AMDA
    • $MARA
  • IB has 550k shares of $DCTH available to short for 6/22/17. Question is, do I put in my last weekly trade as a short for $DCTH, say for 2000 shares?
  • Potential trade:
    • Entry: LMT Sell 2000 @ 0.25
    • Risk: LMT Buy 2000 @ 0.30
    • Exit: 0.15
    • Loss / Gain Targets: $(100) / $200
  • I’m only watching DCTH tomorrow, nothing else. Let’s fuckin get it.
  • I’ll be looking to close my positions on IMGN & FOLD as well.