Daily Recap: Navigating Slow Markets with Precise Entries
Today was another good day of trading for me. The market was very slow for small caps this morning, and there were not very many opportunities. Despite this, I managed to capitalize on both of my trades today, focusing on finding solid entries which paid off well. I ended the day with a profit of $61.37, bringing my account total to $934.14. Let’s dive into the trades.
Trade 1: APPS
I decided to trade APPS today since it was one of the few stocks with positive news. Although it had a higher float than I typically prefer. This stock had gapped up after the market opened and then had a bit of a sell off. After the sell off, I noticed some buying support, so I entered at $2.415. There was also confluence with the 50 EMA on the 5-minute chart and the 200 EMA on the 1-minute chart, where I set my stop loss at $2.32 with a 10-cent offset. This trade lasted over 3 hours as the stock slowly climbed upward. Eventually, I adjusted my stop loss to protect my gains as the price moved, and I was stopped out at a 1:1 risk-reward ratio at $2.52, securing a profit of $18.33.
Trade 2: MGOL
During my trade on APPS, I spotted an opportunity on MGOL. This stock was showing momentum without any specific news catalyst, which made me a bit cautious. However, I identified a pullback to the 9 EMA and entered at $3.84 as the price broke above the previous red candle open. I set a stop loss with a 15-cent offset to give the trade enough room to breathe. MGOL continued to climb steadily, and when it spiked on volume, I reached my 3:1 profit target. I sold at $4.27, locking in a profit of $42.97. This setup aligned well with my strategy, although I typically prefer trades with a clear news catalyst.
Conclusion
Overall, today went well despite the slow market conditions. I patiently waited for setups that met my criteria and avoided forcing trades. I’m improving in my ability to stay disciplined and identify potential opportunities, which is crucial for consistency in trading.