Trading Is Risky But Simple: How to short sell stock successfully $HUN Dec 21. 2015

Stock of the day: HUN

I know I may sound like a broken record, repeating;

"you need a lot of capital to make money trading besides the

knowledge and long time experience fulfilled with pain and suffering "

Understanding this is beneficial to anybody who wants to make consistent income from treading and I am very honest about it. The reality is: if you want it really bad, you have the desire, the passion, determination and willingness to outlast the 98% of the losers, you will find the way how to get to the needed capital. I blog and tweet real time how I trade in order to share and to help others who want to learn, while at the same time I am learning and improving my own discipline being publicly watched in real time. Please do not attempt to copy my trades.This is only for entertaining and educational purposes for which I do not request any compensation.

It is my belief that only the strongest, the most dedicated and the well funded traders stand a chance to make it.

Here is how the $HUN short trade unfolded:

It was on my watch list as a nice gainer that is easily exhausted on daily chart being under down-sloping 200, 50 and 20 sma ( Simple Moving Average on daily chart). Click on the image to enlarge it.

HUN daily

It opened with very minor gap above the UP-sloping 20sma being above the 200sma intraday 2 min chart. This would be normally a long trade when the stock is breaking out from a daily consolidation channel , or if the stock was severely oversold several days in a row. So I avoided this short , because it was giving me no edge and in my opinion, it could have have gone each direction 50/50. It was gonna be winner in this case , but that is not the way I like to trade.

HUN the avoided short trade from the open.

So I decided to chill and wait till something really nice pops out, watching the SPYs and the other stocks from the watch-list. Yes , this is the hardest part : to stay away from the keyboard when nothing convincing is out there to grab my attention. But one thing I know almost with 100% certainty: An opportunity will be presented to me if I just stay calm and keep watching my monitors with pre set charts from my watch list, in addition to scrolling other stocks and getting the feel of how the market breaths this morning.

I got bored and stepped away from my desk and actually saw HUN making a parabolic up move above PDH , ( from 10.30 today's low to 10.80 the today's high), which is its FULL ATR !!!

Main levels of interest:

PDH ( Previous Day High ) , 10.70
Today's open 10.57 as marked with the horizontal lines

The edge : fulfilling the $0.60 ATR and being above the PDH

Once I saw it above the PDH ( on my phone !!) I started to twit my thought process. Click to see the twits real time and compare with chart time. If you do not have the patience to do this, if you just want to copy my trades you shall quit trading immediately

The first alert on HUN that got my attention

Will HUN fail or hold 10.70 the Friday high ( PDH)

Waiting for the PRICE ACTION to tell me what will HUN do, NOT GUESSING

HUN fake breaking the new daily high I really wanted HUN to parabolically shoot up way above its already full ATR range and then to hit it short really hard with size , but of course it was a fake out break out on already overextended symbol. ( I lost a lot of money buying those fakers LOL)

There she is HUN failing the Friday high NOT CHASING IT , but patiently waiting for a pop to start building my short position. Building it yes, this doesn't mean adding to a loser. The size must be appropriate so I can build it without ANY SWEAT if it goes above today's high, which is area of my risk tolerance, area where if some miracle happens on such a weak day on SPY, I will take my loss and go play tennis. If I start with large size, I will have to be right immediately, since if goes against me I will sustain large loss and I will have to exit before the actual real trade unfolds. So I have to start small in which case I may be right instantly and profit will not be very large. That is the main reason why undercapitalised traders fail, going with inapropriate size for their accounts and mostly ending blowing it up. The correct size to trade with $5,000 acct will not allow you to make $100,000 per the claims of some FURU GURUS. like Timothy Sykes. The incorrect large size may get you a nice gains on short run IF YOU GET LUCKY , but the odds are more likely you will blow up your tiny account.

HUN colapsing like Titanik but still not chasing it waiting for the rip to short at the ask so I will ADD LIQUIDITY and get paid for it (getting the rebates )

The short sell order in place at the ask 10.67

The short sell position and the plan to build some more

The plan to build more short knowing it is hard to be right, right of the bet and importance of having proper size ( money management ). This really depends on you account size and your own risk tolerance, your level of greed, your level of modesty.

Why I had such high level of confidence on this short

A dding to the short : click on the image to enlarge

HUN the build up of the short position

The update , trying to tweet and trade is not easy When somebody is insulting me by putting me down that I am lazy and have no clue what I'm doing, calling me all sorts of nasty names, I do not take it lightly, especially when he is reputable and well known public figure. It is all in this previous blog post about Timothy Sykes.

Covering for some profit locking OK gains