How to use the SAR indicator | Rookie Trader Journal 16 Jun 2021 - Cut VLDR

"The parabolic SAR is a technical indicator used to determine the price direction of an asset, as well as draw attention to when the price direction is changing. Sometimes known as the "stop and reversal system," the parabolic SAR was developed by J. Welles Wilder Jr., creator of the relative strength index (RSI)."

https://www.investopedia.com/trading/introduction-to-parabolic-sar/

• The indicator appears as a series of dots.  
• A dot below the price indicates a bullish signal. 
• A dot above the price indicates a bearish signal. 
• When the dots flip, a potential change in direction is underway. 
• When the price is trending, the SAR indicator works well. 
• When the price is moving sideways, the trader should expect more losses and/or small profits. 
• Complement the SAR trading signals by using other indicators such as a stochastic, moving average, or the ADX. 
• Eg. SAR sell signal is confirmed when the price is trading below a long-term moving average. 

Here's how the SAR dotted signal looks like on Apple stock. 

I skipped the journal yesterday due to emotional reasons... which shouldn't happen. Why? I carried out my first disciplined stop loss.

How's my purchasing power today?

• I can buy 2 stocks using Moomoo. 

Any stocks in my Moomoo watchlist to buy? 

• FedEx?

Any tips from TraderTV Live?

• Nothing. 

Which stock in hand can I sell?

• ADVM. Bought $4. Stop $3.47. Target $4.40. 
• METX. Bought $1.60. Stop $1.53. Target $1.90.
• AAPL. Bought $125. Target $138 or cut at KDJ dead fork. 
• VISA. Bought $233.27. Target $256 or cut at KDJ dead fork. 
• VLDR. Bought $11.65. Target $12.82. Cut at $10.70. KDJ Down Crossing. 

How to track medical biotech stocks, meme stocks, and penny stocks... As well as any popping stock?

• New strategy using Moomoo.    
• Started on 7 June 2021. 
• Scan Trade Heat list to look for 3 signals.
• 1st signal - Buy on KDJ Golden Crossing
• 2nd signal - Confirm uptrend with SAR and MA. 
• 3rd signal - Double confirm with Oversold Analyses. 
• Sell on opposite signals. 

See you tomorrow. 

~ Rookie Trader 

PS: I would like to thank the following...

• For the charts... https://finance.yahoo.com/
• For the analysis... https://tradertv.live/

Buy Crypto?

Footnote:

• Don't be influenced by news. Follow the indicator signal instead.
• Buy Market price when I see a signal. Don't buy at a Limit price. 
• Buy on dip from late April to early May 2021.

• "Sell in May and go away" is an investment adage warning investors to divest their stock holdings in May and wait to reinvest in November. From 1950 to around 2013, the Dow Jones Industrial Average posted lower returns during the May to October period, compared with the November to April period. ~ https://www.investopedia.com/terms/s/sell-in-may-and-go-away.asp
• Since 1950, September has been the worst month of the year for stocks on average. And when August is a particularly strong month, September is an especially bad month for stocks.~ https://markets.businessinsider.com/news/stocks/stock-market-outlook-september-worst-month-year-lpl-strategy-buy-2020-8-1029549498
• Queue GTD for every buys and sells. 
• 10% strategy is not efficient. 5% profit is faster to reach. Hence Change to >$100 target strategy instead. 
• Buy quickly once I identify a stock to buy.
• Missed SEAC spike 3 times within a week. Dropped to negative immediately after the spike. Lesson - Queue up to sell using GTD. Forget about using alerts.
• Premarket moves are irrelevant and distracting. Stop tracking them. 
• Buying at the market close is not a good idea. Too many premature supertrend false alarms. Stop trading the closing hour. 
• Sell immediately if price spikes on news.
• Remove emotion from the equation.
• Sell. Don't hold. Don't be greedy. 
• Sell when the target is hit. Don't hold. 
• I need a cut-loss strategy.
• If I don't sell, I will have no capital to buy. 
• Stop thinking that I should have held the stock that rose 100% times up after selling. Remember SEAC. Locking the profits at hand is better than risking the opposite direction.
• How to recover from stock market losses? How to recover my money lost? How to win my trading losses back? 
• Change my mindset to making money and “NOT recovering”. It is a very common trap and you should not fall into it. ~ https://www.quora.com/How-do-I-recover-a-loss-in-a-share-market
• The best way to recover after losing money in the stock market is to invest again. Don't "stick your head in the sand and put your money under the mattress, because you'll never recover that way". ~ https://money.usnews.com/investing/investing-101/articles/how-to-recover-after-loss-in-the-stock-market
• Do not be in a hurry to recover the money immediately but wait for the market to give you the opportunity.  ~ https://www.motilaloswal.com/blog-details/How-to-go-back-to-equities-after-you-have-lost-money/1390
• Take some time to diagnose what went wrong. Assess your stock market loss so that you can make changes. ~ https://www.google.com/amp/s/www.savagelaw.us/blog/amp/how-to-recover-from-a-major-stock-market-loss/