I’m beginning to master the art of finding stocks before the market opens that will be in play throughout the day. I still need to work on how to trade those stocks after I locate them. $VSCP had a huge run last Friday. Its up on earning news. Everyone knows that’s its coming down. The when and how are to be determined.
At the open it was anyone guess as to which way the stock would go. From 9:30am to 9:35am $VSCP went up about $1.00. It then continued to climb until around 10:30am. During it’s rise, I kept thinking at any moment the stock would start dropping like a rock. Everyone knows that it was suppose to go down, that’s probably why it didn’t.
I took a few trades on this trying to guess the top. I ended up losing on 2 of the 3 trades I made today on $VSCP. I didn’t want to miss the big move. Because of that I traded a few times without any solid reasoning to take the trade. I simply didn’t want to miss out.
Today I’m reminded of an article I wrote back in June called Truth and Sentiment.
The true statement of the day was $VSCP was up way too much based on their earnings release. It was widely believed that $VSCP should go down. You add these to items together and you get just the opposite. Instead of going down, it went up.
On the third trade I played a small bounce to help re-coop some of the money I lost today. This was last Fridays runner and a big mover today. In the future I need to be more bullish on runners when there isn’t much else going on under $10.00.
I got a lot out of this trade today. Below are my thoughts as the trades were unfolding.