this week's lesson.
Today we are discussing my performance throughout the beginning of 2019.
I started the year off strong with profits near $254,000 in January and $160,000 in February before watching things slow down in March.
However, there is one recent play to talk about, and that’s $FTNW, which was spiking huge in the pre-market. This ticker continued to fade out after the morning spike and didn’t give me the opportunity I was looking for. Waiting for the right set-ups is crucial when you’re faced with a dull market because your focus can shift towards overtrading. When you feel like you missed out on a play and the market owes you money, you’re beginning a chain reaction of poor choices.
That spread makes your execution that much more difficult, and you'll end up affecting the price substantially, whether you go long or short.
It’s important to pay attention to volume because it can tell you the best position to take...
…such as a stock with crowded volume that now leans towards the long side. On the other hand, if there’s less volume, the short side is favored; however, less volume could also mean there’s not enough liquidity, and that downward trend can produce a drop in the stock. In addition to keeping an eye on volume, you must understand how to watch for consistent resistance.
By looking at $BSQR, we can see that there’s not much resistance history, so it needs to be viewed as a fresh chart. When a stock pushes through the consistent resistance zone, that crowded flow begins to rotate, and your predictably is shot. After testing this pattern many times, I can say that if $BSQR has a consistent resistance at $6 with 20 million in volume trading, then yes, there will be resistance. However, the float rotations prevent the stock from being tradable until that consistent resistance has been broken because you need the stock to be forced back down to build that support level.
$ACHV relates as a ticker with prominent resistance and massive volume as we see the resistance at $6 and the spike at $4.48. This ticker traded about 70 million shares in intraday, which led me to think that the stock will overwhelm the resistance volume. When you see a set-up like $ACHV, don’t force yourself in at the open, candle or not, because you’ll either get squeezed on the short side or get faked on the long side due to the amount of action.