Day 48-50 Trading With Ricky

Day 48

Day 49

Symbol: UCAR

Type: LONG

Outcome: LOSS

Market Hours: EXT

Stuck to Rules: YESw

Review: I entered this trade based on a spike in volume around 0700 CST, but soon after, volume plummeted as the stock reached resistance levels I identified upon reviewing the video. These resistance levels were marked out retrospectively, as I hadn't noticed them during the trade. I recognized these levels as points where sellers exerted pressure, pushing the price down whenever it attempted to rise. Recognizing the decrease in volume, I exited the trade early, considering it a prudent decision to limit losses and preserve capital for future trades.

Lesson Learned: This trade highlights the importance of thorough chart analysis before entering a position. Had I taken more time to analyze the chart, I might have identified those resistance levels and adjusted my entry or exit strategy accordingly. I admire Hennessy's approach of analyzing higher time frames, and I aim to incorporate similar techniques into my trading plan to improve my decision-making process.

Day 50

This week, I'm still in the process of testing out a switch from reviewing screenshots to video journaling. I find video journaling to be a much more effective method for trade review, as it allows you to actually witness the movement of each candle and the corresponding changes in volume, which significantly impact decision-making when entering a trade. The video provides a comprehensive story of the trade, and it's beneficial to hear Ricky's commentary in the background to recall his insights on a particular trade.

As I'm still getting accustomed to pressing the record button and managing trading activities simultaneously, this week's journal entries will primarily consist of a few highlighted trades. I'm using Bandicam software for recording.

Overall, these three days were relatively successful. I executed ten trades, with three losses, one of which exceeded my 3% stop loss. However, achieving six wins out of ten trades aligns with my typical target, maintaining a 3:1 risk-to-reward ratio per trade, thereby ensuring that only six of my trades need to succeed to achieve profits. My biggest loss on CADL was solely due to greed and FOMO (fear of missing out), and there's no external factor to review there aside from recognizing that I incurred the loss due to my own actions.

Symbol: LGVN

Type: LONG

Outcome: WIN

Market Hours: EXT

Stuck to Rules: YES

Review: volume spiked over 50% around 0725 CST so i entered immediately. I admit i do green candle chase from time to time, but i only do it on volume that spiked over 50% because i notices if the green goes over 50% then there is a good chance that the second volume bar will also go over 50% which tends to be enough to drive price north. when Ricky says "don't chase green candles unless you're a professional green candle chaser", well im not a professional green candle chaser by any means, but i think im figuring out how to do it safely and within reason. I exited as soon as the long wick on top presented itself, showing a lot of selling pressure.

Lesson Learned: An issue i found chasing green candles on a volume spike is that sometimes your order wont fill if the price is rising so fast that your limit order will miss the fill and you have to cancel and resubmit one or two more times, giving you a late entry and missing out on some good gains.

Symbol: LASE

Type: LONG

Outcome: WIN

Market Hours: EXT

Stuck to Rules: NO; ENTERED ON LOW VOLUME

Review: I entered this trade attempting to capitalize on a pullback, but the volume dwindled immediately afterwards. I decided to stay in the trade because the price began to consolidate, which can sometimes precede another upward move. After waiting for some time without significant changes, I exited the trade around the resistance level where the price was consolidating. In hindsight, had I stayed for about 15 more minutes, I could have capitalized on the subsequent price rally. However, it's also important to recognize that prices could have fallen after the consolidation, making my decision to stay in a low-volume, consolidating trade quite risky.

Lesson Learned: This experience underscores the importance of monitoring stocks that have shown significant activity. Placing them on a separate screen or watch list can help in identifying potential opportunities for re-entry during another price surge.

Symbol: MRIN

Type: LONG

Outcome: LOSS

Market Hours: EXT

Stuck to Rules: NO; ENTERED ON LOW VOLUME, UNDER $2 STOCK, ENTERED AFTER THIRD PULLBACK

Review: In an attempt to explore the potential of after-hours trading, I engaged in a trade that ultimately did not adhere to my established rules. I chose a stock priced under two dollars and decided to enter after its third pullback—both decisions contravening my trading guidelines. As evidenced, the volume significantly decreased at my entry point following the third pullback, leading to a substantial price drop. Fortunately, I had minimized my risk by opting for a very small position, which limited my financial loss.

Lesson Learned: Trading rules are equally important in after-market sessions. Maintaining discipline in following these rules is crucial, regardless of the trading hours.

Symbol: NA

Type: LONG

Outcome: WIN

Market Hours: EXT

Stuck to Rules: YES

Review: I engaged in this trade based on a significant volume spike, implementing a new strategy which involves buying when the first and second volume bars exceed 50% on Ricky's Dominator Master indicator. This entry criterion is particularly effective at the beginning of a run-up, typically around our pre-market open at 06:00 CST. After my entry, the stock experienced a pullback and displayed a series of doji candles, indicating uncertainty. Despite the uneasy market signals, the stock eventually surged upwards. I chose to exit the trade primarily due to apprehension triggered by the steep pullback and the long wicks on the doji candles, which suggested potential volatility.

Lesson Learned: This trade reinforced the effectiveness of entering on strong volume spikes, especially when they surpass a 50% threshold on Ricky's indicator, and are supported by additional analyses like the 5-minute chart and overall stock trend. This approach appears to be a safer method to engage in what might typically be considered risky candle chasing.

Symbol: WNW

Type: LONG

Outcome: WIN

Market Hours: EXT

Stuck to Rules: FIRST Position - NO (held through a steep pullback), SECOND Position - NO (entered due to FOMO)

Review: In this trade, I initially entered on a high volume spike, which aligns with my strategy of chasing green candles when the volume is at least 50% above average and indicators on Ricky’s Dominator Master are green. However, the trade almost immediately faced a significant pullback, which I held through, contrary to my usual strategy. This could reflect why Ricky developed his pullback strategy over his 30 years of trading, understanding that such retracements are common before a run-up. After the stock stabilized and began making new highs, I re-entered alongside Ricky with a smaller position, which led to a 6% gain. The 5-minute chart supported this decision, showing that subsequent candles were forming above the bodies of the previous ones, indicating strengthening price momentum.

Lesson Learned: Pullbacks have occurred almost every time I've chased green candles on high volume spikes.

CREDIT:

Ricky's Discord link: https://discord.gg/thinkorswim

Ricky's YouTube channel: www.youtube.com/@stockalertscanner-fw5ex7.7K