Factors that determine Easy trading versus Hard Trading

NGLS  the stubborn short trade ..I took this personally from taking a big loss on it  yesterday a very bad habit that I need to overcome. It just blows my mind how people can be chasing a stock long after 4-5 days strong move up. The spread is normally showing the liquidity, which was really bad and neither novice or myself shall have  any business to mess with such plays.
Just leave it alone.
But in case you do like to try the challenge this is how I do it:

I made rules that I obey and these are MY RULES  that I live by:
Rule Number #1 when a big spread is in effect :
NEVER HIT THE BID to short  and NEVER HIT THE ASK to go long.
It happen to me couple of times to buy at ask or sell at bid on a big spread and I was INSTANTLY and IMMEDIATELY DOWN over $1,000  trying to play big size of 5,000 shares or so.

Ever since then I made rule Number #2:
NEVER ENTER A BIG SIZE AT ONE CLICK or ONE ENTRY 
Now my default entry is 100 shares , so if I need to get size of 500, 1000, 1500 2000 and so on ,  I will hit the button respectively 5 times , 10 times, 20 times as needed to get filled.
This automatically PROTECTS  me of entering too large size by mistake, especially when playing big spread trades.

So here is NGLS how I started to short it :
The arrows represent the entries ( approximate )  and I place them above the market NOT HITTING THE BID. There are arrows above and below the candles t that were orders layered to get filled if the market would go higher to build bigger short position or if the market drops lower to cover in layers and to get paid in partials as I twitted but unfortunately I can not twit it all,  it is impossible to do all..

NGLS

Now here is this nasty feeling while I am trying to get and build position thinking this:

• "Oh I may not get filled, price may never go up there and I will miss the trade if it drops , and I will make very little money..maybe I shall just hit the bid ..hmmm...what a hell let me just get in this trade I'm sure it will go down after 5 days up and I will be upset if I am not in it, so I will not be able to make up for my loss from yesterday ....blaa  blaa blaaa "  milion and one reasons to get in the trade crossing my mind.. ha ha 

My mind keeps saying this ALL THE TIME.. So who is my enemy here ?
Overcoming this emotional feeling of missing the trade  is one of the HARDEST THINGS to do in trading   ( Speaking for myself)
Very seldom I get lucky hitting the bid on big spread and having the stock to dive in like Titanic. It is a great feeling when it happens, but more often is a bad habit. We tend to memorize those winning trades and we get a good reinforcement out of bad habit. Really really bad !!!

People ask me why make only $100 with $30,000 acct? The above explains it all. Do the math: My rule I go buy is 1/10th of ATR is distance to build position or to take  gains mostly adding liquidity to the markets. Scalping allows me small but more consistent gains rather then looking for home rums that do not happen very often. The ATR of NGLS is $1.55 so 15 c would be distance to add or to take profit. Of course I incorporate the intraday support and resistances,  20 and 200 sma as levels where position may be stopped out, or be build heavier when everybody is getting stopped. This can not be read and learned from reading a book and immediately  "quit my job and make living from trading ".   Only way to understand it is to DO IT.  And to do it long time. And to do it long time know you will be losing so if you are novice , or seasoned trader who never have a green month , play small even a symbolic size , until you get it. I still don't think I am good enough and one of the reasons I write this is to get it sunk  into my mind coming from myself to myself. It is just not easy and I am battling this battle against myself every day.

AAPL

I was scalpin layering short sell orders on the up moves and covering into the dips.

AAPL

SPY

At the same time I keep eye on SPY and QQQ that were strongly divergent with AAPL making higher lows versus AAPL making lower lows. At my last short a heavy buying came across the time n sales. If what I expected didnt hapen , ( I expected furtehr crush in AAPL before the FOMC ) then the opposite was very possible to happen at much higher level. Reversed the short to long risking one 5 min candle entering long 94.30 area at the break above the first green 5min candle right from the bottoming tail prev 5 min candle in mid day. Loaded up on the way up, made my day .. I wish I was shorting it after the FOMC but I have no regrets.

To conclude the key factors in going long AAPL: 

1) oversold to 94.00 round number

2) strong divergence with SPY and QQQ

3) the bottoming tail 5 min candle , followed with strong buying Time n Sales

4) the first break above the high of green 5) min candle at 94.34 area with risk below the same candle. great RR with great trail on the way up. 

 The only regret I have is NGLS, but it was again LESSON LEARNED. Don play big spread, iliquid stocks. I will stay away from them once and forever.

CREE was twitted real time actually way ahead of it, if you want you can see my twits with time stamp. I did tiny size just so I can demonstrate how it works while twitting it

CREE

CREE executions easier to show when only few hundreds shares 

.

Hope this helps

Feel free to post a comment weather you like the post or you don't.
Love to answer any questions. What else am I gonna do   :)  Salute

AngelDan@DaChopa