The secret INSIDER INFO how to trade stock HCN OXY

So here we go: First and foremost you would know the SECRET already if you have red my blog from day number one., and followed my twits of which NONE is made in hindsight.

The truth is : There IS NO SECRET .
 It is all in the price action and it is available to everybody. Knowing how to read the charts , the time and sales, the level 2, means knowing how to  reveal the footprints of the traders who actually do move the price of the stock. Let's assume that you really do have an inside information from the day before. Can you trust that information and to which level? If somebody told you last night:  "Hey, HCN  and OXY will be sold out by (let's say)  George Soros tomorrow" , would you blindly believe in the info? Or you would rather rely upon what you actually see during the market trading hours?

This is the first example:
HCN the short

HCN

What do I see?

1) First and Foremost: The big picture, to the left is the Daily Chart !

Nice solid uptrend since $58 level just broke  the 200 sma $68 level  and closed above it for 2 days. The second day , which is yesterday, is an INSIDE DAY click here to learn more. Normally an INSIDE DAY means indecision, neither the buyers or sellers took control, and the price remained within the brackets of the previous day's range. It is very possible that once the price breaks out from the inside day , it may keep the trend in the break out direction.  

What happen today ? It open with gap below the inside day low, as seen on the right chart. Also SPY opened the same way , below PDL ( Prev Day Low) . So my bias was established: I assumed the price will go lower based on the above said. I say "assumed" since we can never be 100% sure about the direction, we can only speculate by the price levels , and more importantly manage our risk. Since I  can not control what the ohter traders may do, I can control ONLY MY ACTIONS, which is most importantly managing the risk I am willing to take.

The Prev Day Range acts as pretty much strong resistance, and keeping that in mind I plot my trading plan, which is how to short HCN. Being a trader for many years I learnt one very valuable SECRET that I am willing to share:  If my bias is correct , the stock price will get to the  predicted levels in the most painful and most unpredictable manor , that more likely will cause me to lose money regardles of the fact that I was right in predicting the direction. Just because you know how to swim is no guarantee that you can swim with the sharks.

I lost a tons of money to understand this, being usually chopped up and  out of buying power before the stock gets where I predicted. And of course once it gets there without me, I would get so pissed off, so next day I lose even more money, he  he he  :).. I know most of you are in that stage now. But dont worry I will tell you the secret how to overcome that challenge: It is very simple: 

REDUCE YOUR SIZE

But now you may say : " Wait a minute If I go small how am I gonna make real money ?" . 

He he.. Ask yourself : are you making any money now,  playing big ?   LOL

So assuming  I am with correct bias, having in mind the stock will travel to my target area very heretically. I evaluate the risk according to the area of being wrong. In HCN case, the risk area is the channel of the prior day congestion area, which I expected to go there. Why and how did I know this will happen? Well , institutional holders of HCN are not small players and have a lot of stock inventory that they might want to unload. The professional traders  are masters in quietly unloading stock inventory, since they need to get the best price possible for their clients : the institutions. So you need to know who you are up against when in the trading arena, or shall I say "the shark tank".

Specially if yo have $5,000 acct like Tim Sykes students, LOL cant stop laughing when ever I mention him...Insulting me for not watching and buying his trading videos  LOL. The chart below has marking of the increased volume and the INSIDE 2 MIN BAR , which has the same meaning as the daily INSIDE BAR .  Indecision,  followed with a break down,  after a significantly increased volume which is THE FOOTPRINT of the big balers, who drove the price up at the level they like to unload, while  the retail guy ( nicely said for the sheep) felt it was too good to miss e long trade   hehe. It is just great feeling that I lost many followers twitting these short trades live. Somehow people do not like shorting !! For me, shorting is the best way to make money trading,  period ! Those who don't like it, about 90% of the "investors", are the ones who we the pros need to have to always make money off :). 

HCN

The video I made is just to knock out those who think I trade in hindsight, who never even red my blog or followed my twits , all in real time. It will not show on a mobile device, but only on a computer and I don't know why. It is here👇👇👇

The Hammer Time   LOL

You can run HCN but you can't hide

I had HCN in another account, day-trading and  swinging it short, so PnL does not reflect it 

OXY the other short 

OXY 

As I twitted it (click here) the plan was revealed 

The similar scenario, plan was to short the rallies,

Most importantly the greatest discovery I had from the years of trading is about the initial size. The  fact is that on long term you will make more gains if your initial size is smaller. It is very hard to understand this till you actually do it. Many people ask me about the size they need to trade. My usual answer is the same: calculate the building of your position to be by assuming the stock will travel to your destination in the most uncomfortable way.  If you are to climb Mt Everest, will you back pack only one T-shirt ? Understand that EVERY TRADE you will get in will be tougher then climbing Mt Everest. So plan and prepare your size according to the worst case scenario.You do not need to  calculate what will be your profit. Calculate and count on with very high certainty that every trade will be a loser. So play the size that if every trade is a loser , you still be able to pay your rent and buy food for your family. 

Now here is another SECRET revealed: Make sure you have spare battery for your  mouse and  get a solar keyboard like mine. She is awesome ! Because sure enough when I wanted to short some  more OXY as tweeted HERE my mouse battery died  LOL. This is how OXY ended missing twice as much in profits

OXY   at EOD

And this is why people un-follow me:

And this is why people un-follow me:  I twitted here  in a "HINDSIGHT ???"  LOL

No I am not a prophet or perma-bear , I just like to make few bucks the easier way then climbing Mt Everest. 

SPY main pivot level 

SPY ughhh the prediction

SPY at EOD 

Hope this is educational and entertaining as it is entertaining to me writing it , which after all makes me a better trader , and who knows maybe a better person saving few sheep ?!?

Please write a comment let me know if you like this or if it is not too understandable, feel free to ask questions  I love to trade and help others when I can , since I know how it is to be a loser, been there for a very long time :)

Salute and have a happy trading all 

AngelDan@DaChopa