Thursday, 4 June 2015

How I buy dips on a momo stock ($VLTC Trade Recap)


Any questions/comments please post as a comment to this blog-post, however if it's a generic question about my trading, try my website's FAQ first

I highly recommend watching @Investorslive Textboook Trading to beginners and intermediates as well to educate yourself about momentum trading

 And the obvious disclaimer - I am not a trading/investment adviser so please be smart and consult a certified financial adviser before making any investment decisions
How I buy dips on a momo stock 

 Sticking to one momentum stock and sticking to it, buying dips selling rips is the kind of trading that actually requires skill, rather than buying on the news and scalping a few cents as I usually do.

 In this case you focus on a stock which is in play (higher relative, preferably some catalyst) and a former runner. You buy on dips, and sell on rips ...
Notice the patterns in the chart below, it's my personal favourite for buying on dips:



The perfect setups are the ones which combine the break of a downtrend as it holds and pushes off VWAP:


The only losing trade I made on $VLTC was when I didnt wait for a dip and just chased:



Any questions feel free to write a comment at the bottom

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3 comments:

  1. Unknown5 June 2015 at 04:40

    Enjoying your new series of educational blogs. Thank you.
    I struggle to keep focus on a few key plays; simple psychology and not wanting to miss a 'better' trade, noise etc. Sometimes I see you trade 20+ tickers and then the occasional play all day long.

    I'm trying to setup/configure my beast of IB's TWS again. Please can you share a screengrab/settings of how you configured your platforms/scanners/displays? I know you now use DAS as the front end, a step I'll reconsider at some point - IB not having VWAP on 'charts' is very disappointing.

    After a losing period with my now closed Suretrader a/c, keeping costs to the minimum. Thanks again for your insight and sharing. Cheers

    ReplyDelete
    Replies
    1. parabol1285 June 2015 at 17:27

      well I have six monitors, one the main one i have my IB platform, rest i have DAS charts. I try to keep it 6-7 tickers at a time, i have the 1min and 5min side by side. I also use an app called DeskSpace that allows me to switch to another configuration of those six monitors, that's where I'll have twitter, and my blog etc, hope this helps

      Delete
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