Trading Recap 8-Mar-2018

Not an easy day yesterday but I've managed to turn it around at the end of the day. All my eyes were on $ZSAN yes the same one I wrote about last week. This is the gift that keeps giving, unfortunately I got a little excited early in the day and I went short a little too soon.

Here's the daily chart on $ZSAN.

As you can see this one went from 7$ to 25$ in 3 days...talk about return on investment. This is still a turd and probably will always be so I never even considered going long this even though there was a lot of money to be made on it.

I started stalking for a short entry in the morning and when it broke 16$ I went in half a size and was going to add the other half if it confirmed that this is the backside and the trend has shifted. It didn't.

My mistake here was that as soon as it broke under 16$ I went in when I should have waited 5-10 minutes to see if it does indeed hold under that level and as you saw it didn't, this small loss could have been avoidable should I have waited 5-10 minutes like I usually do.

Here you can also see the vital importance on risk management had I been stubborn (like many traders are) and just waited for a drop to cover my position so I don't have to take a loss, then I would have been screwed as this went 9$ more after I took the loss. These are the trades that wipe out accounts if you're not careful, the stock just goes higher and higher at already extreme levels and you're saying to yourself "HOW MUCH CAN THIS STILL GO? WHO IN THEIR RIGHT MINDS IS BUYING THIS AT 25$!?!?" and the answer is these stocks can go on and on. I've seen stocks going from 1-100$ in 4 days and mane short sellers have been wiped out. Always be careful!

That was the morning trade, later in the day I was basically stalking this continuously I wasn't even going to the bathroom in case I missed the moment of the trend break. And in the last 1.5 hrs of the day it didn't disappoint me, huge red candle to the downside that signified "THE END IS HERE". I wanted a bounce to 23$ but it didn't get over 22$ even and I went in at 21.30$ with half a position in case it did have a bounce over 22$ to add higher and I covered and I covered at 19.29$ wiping out the small loss in the morning and gaining a small win.

Let's see what today brings! Trade well!