SBUX the green short trade and why

I was watching these for shorting  mostly 

 SBUX  has engulfing daily candle after several days in uptrend.
Resistance above is intact trading below the 20 down slopping SMA

SBUX

SBUX

SBUX 2 min bar reversal 

Being with engulfing daily candle, opened below the 200 and below the 20 SMAs  intraday, I shorted against the overhead resistance 58.00 covering on the way down to 57 where it had  inside narrow 2min candle with bottoming tail where I covered and took  a small scalp long for 29 c gain ( wish I kept it longer ,  but hey,, ). . That time SPY made higher lows , being severally oversold on daily and soon  after SPY took the PDL and went red to green , signaling bull's domination. 

SPY

When SPY failed to stay above 191.00, which was 50% re-tracement on daily, aslo at 200 SMA on intra-day 2min frame and made lower lows and highs ( 3 confluent factors )  I took second short SBUX, all per plan at 58.25 area . I was expecting lower highs but It consolidated nicely,making higher lows ( signaling Long possible entry ) so I limited my risk at above 58.50 risking 25-30 cents

It did not have more confluences like the  SPY but had a plan on low risk and sticked to it.

SNDK

Similar to the SBUX reversal candle at LOD, SNDK formed narrow red candle at top of the day after a nice run. Took the short trade at the break down of that candle 74.01 with tight risk above at only 13 c to make 30 c or more . It was a great trade  ( loser but great ) because I obeyed the stop risk and I did it per plan. No mistakes, no blaming other factors.  Speaking in hindsight if I was long SBUX based upon the  same reversal candle rule, after being oversold far below 20 sma ,  just like SNDK is overbought, with such great  risk reward,  it was going   to be  great long trade giving way more gain then just 1;3 R:R.  Same goes (in hindsight) for AAPL . If shorted the same red candle on HOD after being well overextended would have given nice R:R trade

How much I saved by getting stopped correctly

AAPL 

 reversal narrow candle break down with nice R:R 

Will  update more in details about how to act upon price action and ignore any personal opinion I may have

AngelDan@DaChopa

Why I am shorting SBUX

It is the "Path of Least  Resistance "  explained in this post which I will write it again later particularity for SBUX
And here it is:

SBUX short trade

SBUX

Started shorting SBUX also warned on Twitter here

SBUX glass floor warning on Twitter here

SBUX 4th touch down to glass floor warned on Twitter here

Further plan development on shorting SBUX twitted here

Revisiting short SBUX after :dis-comfortable short-lived spike

To remember the lesson twitted here #STUDY this hard

AAPL the warning was given here again on TWITTER lol

and if you still were stubborn to hold your long then I can't help you sorry 

SBUX

SBUX

SBUX

On the daily chart I see resistance above the 60.00. Normally for a big board stock to break such resistance, it needs to consolidate for few days right below the 60.00 resistance,  to get accumulated.

In SBUX case I see a quick two day rally from the $56 bottom on Jan 7.  That is a nice percentage gain for SBUX running into this 60 resistance. It is more likely to have some profit taking by whom ever was buying it from the bottom 56 area. When SBUX was at 56 I did not know if it was  a bottom although was near the 200 daily sma. Guessing the bottoms is quite hard(for me ), but it is easy to see in the hindsight when is already created. The next thing that is easy(er) is  to find the resistance above , and much easier to acknowledge the fact that there has been a nice rally from the 56 and yes, again, somebody is profiting on that rally, and that somebody is more likely to sell for profit. Most likely that somebody are the institutions who load and unload such huge positions that they are actuality the ones creating the move. When institutions are having these massive positions, they can not just sell and unload with click of a button. If  SBUX is trading on average 10 mil shares a day, do you think a institutional holder will sell their 3 million shares with one click of  sell button?  He he..They have super smart professional traders who work with all kinds of sophisticated algorithms to make the stock move in such a manner that by the time you figure what they are doing you already lost your money. And  of course at the end of the day the stock went where you were actually expecting.. So when I was  thinking  (day)trading is all about guessing the direction,  I was so far away from standing the chance to make any money. And I write this because there are many like me who want to make it , but before they even give themselves  a chance, they will blow up and can not survive  to even come to the point to realize that it CAN BE done. It can be done but to get there the size of your trades has to be tiny to start understanding with no emotions how trading actually works.

In one if my earlier posts I explained the (psychological) difference between going long and going short , and why shorting is much easier then going long. I may write it again later on here  ( I just enjoy bubbling about this because I felt such great relief once I realized it is so much easier v.s going long

Subscribe to my blog and look for an update later on... if you are not bored reading this , you are on your way to make it , pardon to at least stop losing :)
cheers

AngelDan@DaChopa.

Watch List Jan 13 Wednesday

My favorite set up is a overextended stock to the upside possibly for few days in a row. Once I have them typed in my table, I make sure I sort them as percent gainers. The top gainer in the open is first that I will chek out. Gaping up , is usually the best.  I scroll through all the symbols very quickly and in the first 2 min in the open I decide what to do.. By scrolling all the symbols , i also get a feel of the pulse of the market.. How many are gaping up or how many  are gapping down, and all that stuff

EAT 

W

CTSH

MDT

CPB

VLO

SBUX

TSCO

AAL

EA

TSN

CHD

How I got chewed by the markets $DUST $ERY $UNH $C

Ah well, you wanna make the big money ?
Be ready to lose big .
I can not emphasize enough how important is the correct size building.
And I am not looking for an excuse like
 " ..oh  I made mistake sizing, it was somebody's else fault or blah blah blah.."
I did it all  per plan , but unfortunately there were no borrows on $DUST and $ERY when I was to built the final blocks after which there were great opportunities to cover and re-cycle, and actually came in green big time !! As a matter of fact, when I could not make those shorts , there were such great drops that if I had the filled shorts I was going to cover really nicely, but on contrary I never even bother covering "thinking and hoping"  they will drop. It is funny how your mind works "wanting " something to happen. But I am aware of this that it can happen so I am not gonna cry now.
I actually did everything right and I do expect to take a beating like this , due to outside factors, however the frequency of these days is by far less then the green days. When I traded with strict entries and strict stop losses  I was right very rarely. Just like a broken clock  that shows correct time twice a day no matter what. Now furus tell you : oh use stops and you limit your risk and you can make $1,000,000 with $5,000...blah blah blah...I have not met many people who actually have made nice gains with $5,000 accts and those who made it  they have lost all and some more later on. One of them is me ,  he he..So this is how I do it now and I love it. Trying to do this with $30,000 acct is only possible if your size is set to make about $100 a day ...I am not saying you will never be able to make $400 or more even a $1000 or more with $30,000 acct.  but if you are really pushing it to get there you may suffer serious losses. Just keep that in you mind.

ERY 

DUST

UNH look how beautifully traveled between the  intra-day supports and resistances 

Will update  C later 

Ill update later , lunch is over let me make some back till close ...

Visualized trading plan for Tuesday Jan 12

Sometimes I do this kind of visualized planning, for a simple reason to keep me focused and disciplined so I do not chase and do not jump the gun too quickly. So why not post it ? My theory that works most of the time is: 

• If I just watch only these few symbols , just like sitting and watching a movie  in a movie theater, the best trades will jump at me one after an other. 

All I really need is to scalp just one good trade of each symbol to make my day. Now I do not know what will be the spread, but even with a bad spread, correctly providing liquidity can be very rewarding. 

Few on watch for short and one for long. 

ERY a gap up open would be ideal for short . 

DUST gap up would be great too 

FLIR

PM

GME is long set up 

AAPL plan for long illustrated.Will not chase if moves up and away

Have a happy trading Tuesday all :)

AngelDan@DaChopa

Another massive day trading AAPL and B long and short

I'm not gonna bubble much here but in essence I want to show you how inaccurate I am with my entries but with proper money management  I  ended up solid green .

You can not make this PnL with $5,000 acct !

Neither with $30,000 acct. 

But you can end up green if you have your plan straight.

Read my previous blog post to learn more so I dont have to repeat it all allover again

How I traded FB  The Big Short click here

FB approximate entries 

This  morning warning was issued  see my twit by clicking here

More detatils:
FB   has $2.6 ATR. So I divide it by 10. My building increments are at about $0.25.  ( 25 c)
I use main daily support resistances to find main levels
I also use the intrday support and resistances for intraday levels to build my position and take scalp profits, plus I use 200 sma and 20 sam om 2 min  chart.
With $30,000 acct I'd be building with no more then 100 at a time  and take profits on each 25 c move in my favor. Making $100 per day with this method should be quite possible with small $30,000 acct.

Disappointed? Ah,  well ...welcome to the reality of trading...You still wanna trade now ? Show me you can do this consistently for 6 -12 months and I may find capital to trade size.

Salute
AngelDan@DaChopa

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