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.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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