Day Trading DRYS

DRYS was trading around 1 million shares a minute when it hit the 1.618 Fibonacci Projection at the the high of the day today. DRYS volumes were orders of magnitude above the previous trading day, which was also a nice up day. This is the kind of action I look for when I'm chasing runners.

If price was moving too fast for you to pull the trigger after one of the many bull flags then a great place to hop on was after DRYS exited the coiled wedge at about 1:15 pm. It was pretty text book that the volumes decreased as the price range narrowed throughout the wedge.

If you could buckle up and hang on for the ride to the 1.618 Fibonacci Projection then you got out near the high of the day (sometimes those Price Targets work!)

On a more personal note and to keep myself accountable I think my actions on the battle field need to be out there. I got in DRYS today as price was consolidating, my entry point is circled on the chart below. I was slow to start following DRYS this morning and by the time I got the 1 minute chart pulled up I felt as if I was chasing price and so initially held off on pulling the trigger. Perhaps I'm a little slow on these fast moving 1 minute charts since I usually trade using Daily and Weekly charts, but this is what I'm doing today. I did not want to jump on DRYS only to have it immediately get slammed lower, which is what can happen after such a vicious price increase. I want to control my emotions and buy when the time is right. After the small push lower I got in right under the 100% Fib, perhaps not the best area. I did however hold through the quick price drop from 4.7 to 4.32 even though it was not a pleasant feeling to to watch my account go down so fast. However, my maximum acceptable loss was not reached for this trade and so I remained in the position. The fact that volumes today were so much stronger than yesterday is a factor I watch for because it is a characteristic found in explosive daily moves. I figure I have to accept and get used to some moments of panic if I want to reap large rewards. I don't like seeing my hard earned money that I made working in office cubicles disappear so fast, but a trader that makes $1000 in a day has to sometimes be down $300. At this point I try to examine and even embrace that panic feeling. What exactly is this feeling all about? My body gets hot and I feel my heart beating a little faster. Can I remain calm and follow my trading plan? Could I follow my trading plan if I was trading twice as much money?

Eventually after price came out of the coiled wedge and got back above the 100% Fib Projection price began to explode higher. It was not so easy to hold on as price quickly ramped up higher, I continually wanted to sell my position so I could relax and pat myself on the back. If I was trading more money I think I would have sold too soon, just to get some relief (we always want to feel better). I actually sold at almost the exact high of the day, the 1.618 Fib Projection (I swear this is not just a vanity post). Not the worst trading day ever. I think I even learned a little about myself.

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