Woke up late today, looked at my pre-market movers scan and found $AXN with more than 2,000,000 shares traded before the open.
Instead of trying to find out what news story was pushing this stock up in price, I just assumed it would bounce repeatedly at the open.
I bought what I thought was a dip. Seconds later the trade turned on me.
I need to chill out and quit jumping into trades without knowing the catalyst driving the price. I still don’t know why $AXN was up this morning. At this point I don’t care. I’m sure they released some type of positive news that got everybody all excited.
I know better than this.
No more trading just the chart. News helps to set the overall sentiment, bullish or bearish. If the morning press release or news going into the day is weak. Odds are the stock wont hold onto its new highs. Thats when you wanna go short. This stock was screaming go short into the open. I was just too lazy to look for the signs.
[blockquote type=”left, center, right”]At the end of the day.[/blockquote]
Now that I’m looking at the morning news for $AXN, its obvious the gains weren’t justified. The Stock Market is always right and will correct itself collectivity. The price had to come back down. For this stock it meant dropping in price at the open.
Looking at the chart, there wasn’t a lot of volume at 9:34am, yet the stock dropped drastically. It lost .15 cents within that one minute on light volume. Thats a sign of weakness. Unprepared is an understatement. I’ve been dying to get my hands on a morning runner. Its crazy that I let this one slip right through my fingers today.
It’s the stupid shit like getting myself prepared for the day that I’m struggling with.
Yesterday it was all about finding a new strategy. Today I witnessed first hand that my current strategy doesn’t even work all that well. I do plan on researching new methods for finding trade setups.
In the meantime, I’m not going to shy away from playing the morning runners. That is when I’m actually prepared enough to know whats really going on.