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Friday, January 8, 2016

I did it for the money The Big Short:FB

FB 
As I promised I write am explaining here why I had high conviction on this short day-trade. However if you have red my previous blog click here , you should know it already why  FB was an easy short. I want to know if you understand the main concept of trading: 

"stocks are  traveling in the path of least resistance "

If you want to trade sizable capital that I may provide for you , first you need to understand the main concept,  show me that you are ONLY consistent ! Need no home runners. No big winners. Just consistent green days. Do not pay attention at my PnL !!! I've been doing it for years for only $100 to $200 daily gains on $100k accts. If you  have $30k acct be HAPPY to make $50 to $100 per day daytrading. TRSUT ME ! If you are a novice , and you try to make more then $100 on a $30,000 acct, the  sharks will eat you for breakfast appetizer !!! If you wanna make millions with $5,000 acct , go pay Tim Sykes because you do not belong here. He needs your money to pay for his Ferraris, Lambos, and private jet travels around the world . He need sheep to sell his strategies that work for one out of 100 traders. Or just play lotto it is $900,000,000 today's drawing !!! 



FB


The next photo is shows more details.
Click on it to enlarge

As the chart tells us, ( the price action)  100.52 area is a very well defined  pivot  point. It was broken yesterday, and FB closed below the 100.50. Unlike the other times when FB touched it and bounced off of it to the upside, once it is broken to the downside the odds are it may test it , but most likely will stay below. To contribute to my level of  certainty was the SPY trading in quite a weak manner TWTR was diving to new lows, AAPL was creating lower lows and lower highs, Trading is not just isolated video game, it has more to it . the clues are all over the charts to support my decisions and manage my risk.  In order for  FB to break above  the 100.50 and to stay above, something very big had to happen. However the odds are smaller to break such strong daily resistance rather then to travel lower through the path of LESS RESITANCE. Where is the next support on the downside ? According to the daily chart $95.00 would be the level to be reached sooner then to break above 100.50. Why? Because nothing stands on its way there. On the way above 100.50 there are FOUR MAJOR pivot points, marked on the chart.  FOUR !!! On  the way to $95.00 ???  NONE . What are the odds ? To brake 4 re-bar concrete ceiling or to dive 5 stories down free falling , where there is no floor? 
For those who are new to my site: I am  not speaking this in hindsight! I trade it real time and I twitted it real time as shown click here  and  then click here 

Now is this a 100% guarantee that FB will drop down to 95.00? The chances are great, but I do not know for sure.  In order to find out, I have to be in it swing to win it. However I won it on a short sell  day trade because I have no patience or desire to wait all weekend to see what happens on Monday.  Could have this been a perfect entry for swing trade ? Absolutely yes !!! As a matter of fact I turned out to be an OK day-trader  from being a very good swing trader. Swing trading opened my eyes for day trading. I do some swing trading but it is small size just to be in the game to keep me excited when I wake up LOL. So that is why I mostly day trade, but that is me , you may be a different kinda a guy.

 For those who do not  have$30,000 to day trade, but have less,  maybe only $10,000 or $15,000 I have a great surprise from @gregvasilev1 .  He has  been following me for  a while and unfortunately or fortunately has no time to day-trade but took my advice on risk management, and how to successfully swing trade. Most of my  day trades entries are derived from great swing trade set ups, that apparently Greg has mastered them down to a science.  Now he has been having a phenomenal consistency swinging portfolios in a manner that I HAVE  to brag about. I personally am bored swing trading stocks, not my ultimate cup of tea, but seeing him doing so great makes me feel just awesome. I encourage him to share with you and pay it forward his experience. So , do yourself a favor, follow him and ask him questions for any subjects on swing trading.  This is his current portfolio all shorts . Fantastic returns !!! More to come soon!!!


Have great weekend and read my other blog posts
Ask questions, let me know if you understand this. or I shall  be more specific.
Write your comments sand I will reply to all of your questions.
Direct message me on twitter if you have any problems with my blog site



Thanx for all of your support 

Angel Dan@DaChopa

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5 comments:

  1. totteedavidJanuary 8, 2016 at 11:49 PM

    Hi DaChopa, Keep up the good work. Very good week for you!. Been studying how you play with your ladies lol. When you can could you write a blog about how you determine your position size. Cheers.

    ReplyDelete
  2. AngelDanJanuary 9, 2016 at 12:53 PM

    Sure I will , i actually wrote but got deleted ..I will do it again soon

    ReplyDelete
  3. KMStockTradrJanuary 9, 2016 at 4:43 PM

    Thanks! Nice read. What was your exit point?

    ReplyDelete
    Replies
    1. AngelDanJanuary 9, 2016 at 7:46 PM

      On FB many entries and exits since I do partails in n outs scalping as the stock breaths.. I marked on the chart with arrows, you may enlarge it by clicking on it. I rarely look at the actual price except when I twit the trade. I mainly focus on the Bids and Asks in L2 and the "Price Delta" known to the pros as difference on your average positions from the actual price...It could be in minus if your position is negative, or in plus when you are green, in the money, calculated in cents. When against you , you wanna build your position so you are as close as possible to 0.00 or in lower negative few pennies. PDT rule do not allow this type of trading when below $25,000 so this is helpful mostly to serious traders who wanna make living as pros. The commissions from most retail brokers just add to the barrier stopping the retail traders from being successful, so the 98% lose money.

      As to the swing portfolio , no exits yet. Waiting on bigger drop..Let's say @gregvasilev1 expect1 them to go as low as CLF did from Feb 2015 til now if you were swing short CLF

      #Study about CLF short (hindsight ) trade here
      http://angeldanjournal.blogspot.com/2015/02/clf-possible-long-play-swing.html

      Delete
  4. AngelDanJanuary 9, 2016 at 7:41 PM

    This comment has been removed by the author.

    ReplyDelete

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