My primary strategy right now is chasing stocks that are up big in the pre-market due to news, hype or sheer madness. When a stock is up, I like to short directly after the morning run-up. For the past week or so there haven’t been too many stocks heavily traded going into the opening bell within my price range ($2.50 to $10.00).
Last week I only traded a few times and then this morning I was so pumped up, that I fucked up. I started following this dude @kcphaeton on Twitter simply because hes from the same area. Little did I know, that it turns out hes in LOVE with the stock $MNKD.
This guy is THE definition of a chaser. I’m sure he thinks this stock is going to the moon. The reason I think that is based on the amount of $MNKD propaganda that appeared on my Twitter feed after adding him.
Deleted him from Twitter this weekend, no big deal.
Then, wouldn’t you know it. $MNKD begins to show up on my pre-market scan as a high volume stock. Each morning I use Equity Feed to scan for stocks between $2.50 to $10.00 per share that have traded more than 100,000 shares before the market open. I’m actually looking for stocks that have traded more than 250,000 shares before 9:00am.
Stocks with a low float and 250,000+ shares traded before the open are in play all day.
$MNKD had about 100,00 shares traded when I checked back on it shortly after the opening bell. Nothing else was popping. Looking at this stock earlier this morning, I wasn’t interested in it. Out of boredom I forced a trade on $MNKD and lost.
I’ve traded $MNKD two other times without success. 🙂
I was bullish on this stock as it was about to reach $7.00. About 10 minutes in, SureTrader kicked me out of the trade. I have about $200 dollars in my account. Looks like I’ll need to add some more $ to be at their account minimum ($500) to use leverage.
Which brings me to my next premonition.
The “morning runner” isn’t always there.
@frankkolnacki referred to today as the possible start to the summer slow down. That makes sense. Most people would prefer to be outside on a nice sunny days.
I need to start looking elsewhere to find setups that have a predictable manner. These popular, volatile, early morning trades don’t happen every day. I need to focus on slow movers. For example, $CGEN and $HILL were slow, gradual losers today.
The scan labelled Kiss of Death is where I noticed $CGEN and $HILL before the opening bell. The Kiss of Death scan shows you stocks “within your price range” that closed the day before, above the Upper Bollinger Band. These stocks typically lose value the next day.
I’ve started paying the $8.00/mo to use Stock Fetcher because I find value in it. The scans I’ve copied from “green on the screen” show most of the upcoming days’ most volatile stocks. I’m sure that tons of other people use these scans. The more people that know, the higher the volume and better the odds of price action.
I’m going to stop trading for a while as I add money to my account. I don’t like being stopped out of a trade, like the one today. Having a small account is another force working against you as you learn how to trade.
Like always, I’ll be back..