Helping A New Trader Is My Passion

A new trader asked me if he did something wrong with his trading today and  put my thought the best I can. Hope this may help other new traders.

CYCC  long

Here is my response :
Be glad what u did today. If we were let's  say live, Id tell you not to do it. But then you will not learn. Now you will  remember this couz u felt the pain of being " red" , and now u  question if its luck or what ... normal thing , its frustrating, I know.

CYCC ,:  this sort of  long plays as a beginner , are good only on the first day of a nice daily break out. To go long today on already overextended move was ok only if the volume was as big or greater then the first day of the move. Im not saying this never works ! But when u r new trader , and u wanna build confidence, try to avoid  trades that can go totally either way. Limit ur trades only on super high probability set ups. Pro traders do those trades like u did but with much smaller size , they experiment because that CAN AFFORD it. The good part is , you did great taking the loss and not hoping to turn your way. That is HUGE !! 

So CYCC long trade was totally avoidable !! But u managed the risk very well and you are still in business.

TASR 

TASR long

This stock on daily is in total sell off, down trend. 

You tried to catch a bounce. Look at my entire blog and find one trade where I tried to catch a bounce on weak downtrending stock :)).  NONE .

 It is extremely hard play , and even if it worked, the overhead resistance is so strong that the move would be very small , and why bother when ur reward is so limited... in order to work you really need to see extremely overexuburant selling , panick selling and some wash out on huge volume where the last long holder gives up and pain is unbearable. Most likely the chart should look like 2 or more down daily candles , with possible gap down, parabolic down move and then higher lows, possibly from daily support created in the past. It should be the opposite of  this : WPRT short trade set up

 You did great stopping out !!! Great risk management !

To Remember : for any long trade you want to have clear overhead , 

less resistance as possible, major trend to be UP! 

Clear break out of a monthly or daily or weekly resistance is a plus!
Good support, as close as possible to your entry.

ATHX 

ATHX long


ATHX

Nothing wrong with this entry,  you tried , didnt work out , planned the risk , you executed the stop per plan.

However , this is one of the BORING TRADES , if  you remember, where you wait to finish the lower highs lower lows, all day and chill listen to www.radiomela.it and then you  time the reversal. entry if sets up with good risk. Here are some past BORING TRADES

BCLI

BCLI

BCLI 

Low volume stock today,  I took this trade too but much earlier, and if you red my comments , regarding the volume , I was unsure and didnt feel comfortable even at the good early entry that  I had, so I was ready to get out as soon as got in. You did ok taking the loss. this went much lower , so its good trade, we both tried , did not work out.

On long trades volume is crucial , most of the times .

To conclude: two trades were totaly avoidable CYCC and TASR, the third one ATHX you should have watched it for late day entry, but I guess it was too boring to wait, :), , That one could have been at least break even, or maybe green trade. 
The third one BCLI it simply did not work, but it was a ok try. So you could have easily had break even day.

Hope this help. 

Salute!