What a ride today, tell me you didn't enjoy it. Well, I guess if you are an investor you hated it. However, being a newly found day trader, I loved this volatility.
I made some really good trades in the morning, catching falling knifes right at the bottom. Within minutes, I was rewarded for taking on massive risk. I then decided to let my positions ride, saying to myself, "there is no way we will stay down this much." I mean right from the start we gapped lower, and to me, that was bullish. I also thought there would be no way the bulls would let the bears win for the 3rd day in a row, just not gonna happen! I was half way right.
With this mindset going into the trading day, I quickly developed a plan. I decided that when shit starts to hit the fan, I will be buying the strongest stock as of late, FSLR. It worked out perfectly! I kid you not, I bought this sucker at the very bottom. I also decided to focus on VMW, BIDU, & DRYS, three other momentum stocks that got crushed the past few days. Those started working for me as well.
Around midday, charts were setting up perfectly! I knew we were about to move one way or the other, and my gut feeling was up. I started pressing the petal to the metal, using up my buying power on the 4 names mentioned above. Within minutes, it was working out perfectly, and I was banking coin at a profuse rate.
I felt like I was in heaven, as I watched my account balance get swoll like a juice monkey hitting the weights. I then decided to leave my trades on, going into the final hour of trading. This is where I messed up! If I would have taken my gains, when my teammate on WallStreak (Sloth) told me too, I could have bought at the very bottom and sold at the peak, effectively looking like a "space alien magician."
I ended up selling my positions once it was clear we were heading lower. I was lucky to get out when I did, before the real drama unfolded. I took a few hits on my profits, but in the end, I came out with "man sized" gains.
Hindsight, I don't know what I was thinking. I mean the market was breaking down technically, it was Friday , nobody wanted to hold over the weekend, and The Fly would be shutting his blog down on Monday. This was a perfect scenario for a sell-off. If I could have reversed my trades, and went short in the last hour, I could have played mother market for all it's worth.
But, in the end, a gain is a gain, and I banked serious coin today!
More updates coming the weekend: charts, stock picks, portfolio update, and a few links! Be sure to check in!.