Reading Stock Chart Patterns - Rookie Swing Trader Journal July 27, 2021

Yesterday, I start studying swing trading from scratch here... https://www.swing-trade-stocks.com/swing-trading-basics.html

This is what I learned and this will be my new strategy.

  • 4 Stages - There are 4 stock market stages. Bottom, uptrend, top, and downtrend
  • 5 Waves - There are 5 uptrend Elliott waves and 3 correction waves. Buy on wave 2. Hold on Wave 3. Sell on wave 4. 
  • Trends - Trade trending stocks. Characterized by higher highs and higher lows. 
  • Identify a new trend using Trader Vic's 3-step method. 1. A trendline is broken. 2. There is a retest and failure. 3. Price falls below the prior low. Use the 10 (SMA) and 30 (EMA) period moving average crossover scan for step 2. Step 3 confirms trend change. Does not work in a sideways trading range. 
  • Bulls and Bear - The 200 SMA is used to separate bull territory from bear territory. 
  • Support and Resistance - Stocks do not find support or run into resistance on moving averages. Stocks to reverse that price level. 
  • The more times a stock hits a support or resistance area the weaker it becomes (and the possibility of a breakout increases).
  • Buy at support. Sell at resistance. 
  • Volume? Not important?
  • THERE IS NOTHING ON A CHART THAT MATTERS MORE THAN PRICE. EVERYTHING ELSE IS SECONDARY.
  • Candlesticks - Stocks tend to move in the direction of wide-range candles. Narrow range candles imply low volatility. Enter a stock in periods of low volatility and exit a stock in periods of high volatility. 
  • Candlestick reversal patterns... https://www.swing-trade-stocks.com/candlestick-patterns.html
  • Reading stock charts. 
  • What stage is this stock in?
  • Is this stock in an uptrend or a downtrend?
  • Is the stock at the beginning, middle, or end of the trend?
  • How strong is the trend?
  • Where are the trend lines?
  • What wave is this stock in?
  • What do the moving averages tell me?
  • Was there a breakout recently?
  • Is the chart "smooth" or "sloppy"?
  • Are there any chart patterns?
  • Are there wide-range candles in the direction of the trend?
  • Are there any gaps in the direction of the trend?
  • Are professionals selling strength or buying weakness?
  • Where are the support and resistance areas?
  • Is this stock at a Fibonacci level?
  • What does volume tell me?
  • To be continued... 

--------

 How's my purchasing power today?

  • I can buy 4 stocks using Moomoo. 
What stocks to buy from Yahoo Finance Watch List?  What stocks to add to the watch list from Yahoo Finance movers-related stocks?
  • YF Watch list. None. 
  • In the YF news. None. 
  • Related YF trending tickers. None. 
  • Related YF market movers. None.

Any tips from TraderTV Live?
  • Skipped. 
Which stock in hand can I sell?
  • 12 stuck stocks at FSMone. See Yahoo Finance.
  • AAL (mm kdj rsi). Bought $21.30. Stop at $19.60. Target $24. 
  • GNUS (yf bbl to). Bought (FSMone) $1.65. Target $1.82. 
  • TNXP (no indicators, gap down). Bought $0.75. Target $0.83.


How to track medical biotech stocks, meme stocks, and penny stocks... As well as any popping stock?
  • MOOMOO BUY SELL SIGNALS: (retired strategy)
    • 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. 
    • Complement with Bollinger Band Breakout strategy. 
    • Sell on opposite signals. 
  • YAHOO FINANCE BUY SIGNAL: (retired strategy)
    • Yahoo Finance mover-related stocks. 
    • Pring KST - Green line crosses above the red line while below 0. 
    • AND price above 50MA. 
  • YAHOO FINANCE SELL SIGNAL: (retired strategy)
    • Stochastic: The black line crosses below the red line while above 80. (Wrong)


Until tomorrow. 

~ The Rookie Trader 


PS: I would like to thank the following...
Buy Crypto? Binance SG.
  • ETH-USD $2303
Note to self:
  • 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. Reinvest in November.
  • August is a particularly strong month, September is an especially bad month for stocks.
  • 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.
  • Queue GTD for every buys and sells. 
  • 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. 
  • 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. 
  • Locking the profits at hand is better than risking the losing direction.
  • How to recover from stock market losses? How to recover my money lost? How to win my trading losses back? 
  • The best way to recover after losing money in the stock market is to invest again. 
  • What happened?
    What worked? Why?
    What did not work? Why?
    What did you learn? 
    What can be done better? 
    What will stop you?
    How to overcome the challenges?















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