An in depth look of trading decisions $VITA

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This is going to be short and sweet, because it’s been days since I last wrote about anything, even if I promised and promised and promised to myself that I would.

Here’s another kind of tackle we could use and how I made some money out of VITA. On my own, I’d look at the chart and feel ‘fear’ over all the parabolic green candles. It’s almost as if the game has turned into a sick version of trader hot potato. Who ever holds it last, gets burned.

I had my eyes on another stock, but Zee disagreed. He said it would take too long and the potential for whipsaw is too high. It was illiquid too. So, in the end, I couldn’t push for it. The stock was DAVIN.

He had his eyes on VITA, and I wasn’t relaxed with the idea knowing how long it’s been trending up and the hype over social media has reached a feverish state.

Ofcourse, the boss gets to decide.

So he bought some VITA and then, at the end of the day, put his foot down and made me do my charting.

He entered, the exit is up to me.

I hope you agree that the exit is a crucial part. Almost the entire prospect of making or losing money will depend on my exit, besides the fact that my exit strategy has been a long time challenge of mine. Even after getting in a good entry, I end up losing all my gains. This happened way too many times that I can’t even begin to count them.

This is how I did my chart.

1

Viva la chart reference! This is the first thing I do. I plot out the “important” things like the all time high— everyone’s favourite I’m sure and notable resistances and/or possible next few supports. It doesn’t have to be all of it, just the important ones. I suppose this depends on what I deem as such.

Next, I look closer at the daily chart.

2-1

Well, what do you think so far? This is how Zee got a really good base in VITA. There was a very strong point in the chart where the price could bounce and then he made his bet.

Checked the rest of the indicators and here is the RSI.

3

Still good, huh?

After that, I made it a habit to check out the rest of the time frames. I go after the longer time frames first, just to get a feel if the run is about to get exhausted or to put a performance check on what level the stock has to defend to maintain bullishness over a longer view.

4

The weekly chart passed my standards.

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And so did the monthly 🙂

All systems go? Well, no, not yet. Everything above talked about the entry and how to calm my anxious heart about doing the right thing. The bloody part is the precision of entry, and for that we need an in-depth look at the minutes chart.

Reminder: Minutes chart must only be considered on stocks with enough volatility to cover for the possibility of whipsaw. Illiquid stocks with small swings will only confuse and whipsaw you when you use the minutes chart.

First look:

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Gap has been filled and the RSI was oversold when it happened. It could be the bottom, so we must investigate further (ha! I’ve been holding off sounding like Nancy Drew but I can’t anymore).

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Since it broke upwards of 20sma, did it hold enough power though? Let’s see.

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Which then begs the question, WHAT is Bullish 50 of RSI?

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RSI above 50 is the bulls’ territory and the opposite is true as well. You could see here, that most of the time RSI precedes other indicators in telling me if we’re about to get bullish. It is an EARLY indicator however, and must be treated with caution as well.

So first, we took a look at the chart and we agreed that it’s due for a bounce. Next, we did a precision entry using the minutes chart.

What’s left is to decide the exit strategy.

Mine was quite simple, although I’ll tell you right now, it didn’t go as planned. I wanted to sell the next day, the second day of the bounce.

Here’s a copy-paste of my message to Zee:

2-1
for your reference

“Possible sell points are:
1. When the price tanks, the rsi falls, and the possibility of someone selling down will trigger iAOTS.
2. When 20sma is broken.

Watch out for 2.60 — next resistance.
Stop at 2.4

Sell at 2.6 to 2.7. 2nd day of bounce. Ought to end somewhere there I guess. Half of the 2nd red candle. Swing trade lang naman ito.

Felt like I should sell around that area since I’m not banking on it piercing the fibo top at this kind of play. 2.7 is easily the half line between 23% fibo and 0. Profits are maximized here, i think, then on to the next play.”


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The next day, it didn’t take too long for me to sell. The funny part is the highest I sold was 2.52 and I felt awful about that at first because it was a mistake.

I was only entering GTC orders so I could get through my day as carefree about the market as I could, living only in one dimension, when the page made a reset and changed my price to the current price. I sold 1/4 of my shares with that.

It was a lucky strike though because a few minutes after that, the price started to tank and fall, eventually piercing 20sma at the minutes chart. I sold the other 1/4 at 2.46 and finally rest of it at my stop, 2.40.


I hope that did you all something good, atleast for a bit. My eyes are tired and blurry now. I’ve been going through a lot of things, and I’d like to politely ask that if you pray, to whoever it is that you pray to, that you pray for me too. Just a whisper.

Just a second of your time.

I don’t even know if it works that way, but it’s worth a try. A lot of things are falling down on me, but we don’t give up, do we? We never do.

Forever yours,
Celeste

 

If God is with me, then who can be against me?

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4 thoughts on “An in depth look of trading decisions $VITA

Add yours

  1. Maam newbie question po, what do you mean by “when the price tanks”? I also notice that you do not use macd, may I know why? Salamat po ng marami!

    Like

  2. so mam ive learned from your post that rsi above 50 is bullish.
    Second the first buy point when SMa 20 go below the candles and if it sustain the possible buy point would be (when the sma 50 go above candles for confirmation)..correct po ba?
    KAsi na notice ko sa study ko na SMA on minute chart are effective as well as BO.
    Just need to confirm that and needs further study tho.

    Like

  3. Hi Celeste, great article!

    Sort of related question: How did you get more than 4 years of data for your charts? My COL charting only gives me 2 years of data. Thanks!

    Like

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