Daily Recap: Another Green Day with Lessons Learned

Today was another green day for me, though not without its imperfections. The market showed better conditions for small caps, and I focused on patiently waiting for good opportunities while refining my strategy. Despite a mistake, I ended the day with a profit of $15.00, bringing my account balance to $859.15. Let’s review the trades.

Trade Review: VSEE

My first trade was on VSEE, and it wasn’t the best setup. I aimed to play the bounce off the VWAP, assuming it was a strong support. However, the EMAs were already turning downward, so I should have waited for confirmation of the bounce before entering. I bought in at $3.61, right at the VWAP level. The price briefly moved up but then continued its downtrend, breaking through the VWAP support. I was stopped out at my 15-cent offset stop loss at $3.46, resulting in a loss of $15.03. In hindsight, VSEE lacked strong momentum and a news catalyst, so I should have passed on this trade altogether.

Trade Review: LUMN

My next trade was on LUMN, a premarket gapper with a new catalyst for the day. This trade had potential, though I was unsure of the extent. I bought in at $4.01 just after a bounce off the 50 EMA/VWAP on the 1-minute chart and the 9 EMA on the 5-minute chart. While I could have bought closer to the bounce point, the entry worked out. With a 15-cent offset for my stop loss at $3.86, I had enough breathing room for the trade to develop.

LUMN was in a strong but slow uptrend. I set my profit target at a 2:1 ratio, anticipating limited potential. After nearly an hour of a slow upward trend, the price finally ramped up and hit my 2:1 profit target, allowing me to sell at $4.31. Although the trade had potential for a 7:1 return, I was satisfied with the 2:1 target given the slow trend and my work distractions that limited better profit management.

Reflection and Lessons Learned

Overall, I aimed to be patient and find better setups, but I need to improve my execution and wait for solid confirmation before entering trades. My strategy, focused on pullbacks to solid support levels like EMA or VWAP, seems to be improving. I just need to ensure momentum continues upward and doesn’t break through support before entering. This strategy is showing promise, and with time, I’ll perfect my entries and refine it further.

Today reinforced the importance of patience and careful execution. I’m encouraged by the progress and look forward to honing my skills even more in the coming days.