I’ve made my first three trades. Equipped with a few things I’ve learned the past few weeks, I decided I need to stop paralyzing myself.
I reasoned for a while that I can’t do it yet. I have no plan, but at some point it sounded like a lie. I know people thriving at current market conditions, no matter the blood bath.
I have no system of finding stocks yet. How the other players screen their kill, I don’t know how. There seems to be a disparity in learning technical analysis and learning how to trade. One must live harmoniously with the other. I may be able to understand a bit more about MAs, but how do I bloody find the good ones?
What I did was rather crude. I kept squeezing my brain for stocks i’ve heard about the past few days. Clues are always there. You just have to know which ones are quietly performing and only a select number of people have taken a liking for.
I have a confession: Hyped stocks scare me. Like a rabid dog to water, I writhe in pain at the idea of playing with the noise. I don’t have the necessary confidence yet to go to war with better soldiers, as I am, like you all know, freshly risen from the depths of my hell.
The first trade I made is LTG.
This is how it looked when I was looking at it. I said, oh, good. The candles rest atop the 20 MA. The way I look at it is like this: If my candles sit or are above the MAs, they have more power to perform because they have their support. MAs are life lines. They belong to royalty.
DISCLAIMER: This is just how I like to call it. It’s originally called Alignment of The Stars by ZeeFreaks.
20 SMA is the Door man, once he comes across my candles and once my candles have his support, I can expect better manpower. In time, with friendship, he will next introduce me to 50 SMA, which is the Queen, and then the next is 100 SMA- the KING.
The Royal Guards must be able to support you. The Doorman, first in line, the Queen… and then the King.
Looking at LTG that day, the stock was supported by 20 SMA– or the Doorman for quite a while now, and recently the candles have met the Queen. The King has finally crossed path with it too. The formation was about to happen. Doorman, Queen, King.
The moment I saw this, I was in a blinded frenzy. Oh I remember my glee. I remember feeling quite like a genius. Good job, good job I said. It was further cemented with seeing the weekly price chart of sitting on top of the Queen’s support.
I bought that day upon opening. Price: 14.78 but I was frozen by my self-esteem. I bid for a small amount. 5000 shares, I said. Just a test money. Just a learning experience.
Funny how a little voice nagged inside my head, ‘5000 shares! well! That won’t seem to do you any profit at all, Celeste.”
So I bid at 14.6. Barat bid. Not really thinking much forward what it would mean if the price touched that. My reason was, that was where the candles would hit the Doorman’s support.
I’ve realized now that the veterans closely watch what candle the price is making and act according to that. This is golden data on where they want it to close.
A few hours later, my bid got hit.
And I struggled to remain happy. My doubts started to creep in. What if the price closes red? Is that okay? What if no one buys up for a better formation? This is the moment I realized I should be cautious about what the price performance does.
I made a rather terrible move.
I looked at the brokers.
Oh, Deutsche and Credit Suisse are with me. Along with a few more brokers I don’t remember. Good, I said. More friends.
Suddenly they started buying up the bids. Buying, buying, buying. I was excited by the move, I didn’t have much time. Oh no! The price is moving up! Oh they’re buying everything! Oh I should have bought more earlier! What a traitorous emotion. I was washed with happiness. I bought 3000 shares more at 14.9.
In the end, the candle closed near the opening price. I have a long weekend to think about it.
By the next day, my conviction already changed.
The things I graded a pass were in fact already dancing along the ley lines of danger.
Ever since the day it broke out, the volume was constantly on the low side. It didn’t matter if it was a red or a green candle.
The RSI at 80. The STS in a tight embrace with the signal line steady above the overbought area.
And the final price candle haunts me. It didn’t look good. That’s when I decided to search what’s it called and what category it belonged to.
Dragonfly doji– reversal candle.
Usually reverses the trend… and the trend was an uptrend.
I lightly told a good friend that I bought LTG. My friend, a veteran trader, looked at me straight in the eyes and said, “It’s too expensive now!”. I lied and said, “No volume, just trying out a system.”
“No volume ha?”
The 1st of December, I was tired from work and I didn’t wake up early enough to sell upon opening.
I woke up in panic.
My heart hammered. God no please! My money! I ran to my laptop and expected the worst…
But there it was–
A gain. The market was green. Bull trading day. My worries melted but the tempation grew. Maybe it would continue its uptrend? Oh dear.
Stick to your plan, Celeste.
2% gain– and I sold. This must be discipline, something I lost upon seeing a brokerage house buy up the bids. I might be wrong soon, maybe I shouldn’t have sold. Will I regret this?
No one ever got broke taking profit right? But we’ll see.
The stock market is a test, and often times you don’t know when you’re right or wrong until about a few days later on.
This concludes my first. Feel free to write me a letter. I hope your trades went well.
Profit made: 2,574 php