TSLA Update

$TSLA literally blew up today, currently it is up about $1.60 from its open and reaching the $39 mark. I bought this at $30.38 and now wondering what to do with this stock. Earnings will be coming out on Feb 13, 2013. No clue what earnings reports will say, the CEO said he is hoping the company will start turning a profit before the year ends, so far I think I'm going to hold on to $TSLA. I see a lot of potential for this company, it is reaching its all time high which is $39.95. As long $TSLA stays above $35.50 - $36 where there is significant support I will remain in the trade for a longer time horizon.

Day Trading - When in Doubt Get Out

Trade 1 - ASNA

ASNA was a tricky stock, I chose it because I actually wanted to see it go UP after the open and then look for a short but it chose to break down a bit. Decided to short ASNA by examining the 1 min  and 2 min candles and it seemed decent but I still didn't like the feel of it. The stock did go down in my favour but then decided to shoot up extremely fast, therefore I had to close out the position and take the loss. It was a weird stock and the gap was too large. 

Trade 2 - YHOO

YHOO - Beautiful play, it is rare to see setups so nice and clean like YHOO today, gapped down but climbed back up to yesterdays close and that is where the short was taken. Simple, clean and easy play. I did not go heavy in on the shares for YHOO because I took a small loss on the first trade, my main goal was to make up for the loss. Which I did.

Trade 3 - TIF 

TIF - If you look at the charts for TIF and YHOO the two on the left the setups are the same, but TIF bounced around in a range more than YHOO. YHOO broke down right away where TIF chilled out, took its time and then, and then after fooling a shit load of people, TIF decided to break down. TIF trades in range for about 30 minutes, the setup was nice but the location of the short compared to YHOO was why it did not work as well. YHOO had already made it way up to its yesterdays close, where TIF had not covered its gap as much.

What I learned today: When in Doubt Get Out and also consider the location of the trade as opposed to just the setup.

Another Swing Trade - Investment

Today I chose to short YHOO for a long term play, I got in at 19.13 and want to see YHOO going down to the $18.50 or $18 range. If YHOO does not work out, I plan on exiting in the range of $19.30. So I am not really taking a big risk here, just looking to put my idle money to use. YHOO gapped down and therefore it is a lot more manageable to swing trade at this time. Also it is below the 20 day moving average and should move towards the 200 day moving average below.

The picture explains the target.

Long Term Holdings

A little while ago I decided to try to actually invest my money. By investing I mean buy and hold stocks and not trade. So far so good, I picked a few companies, one was random, one because someone else was holding it and the last one because I actually believe in the company and its potential to grow.

Investments held:

MTG - Bought it at 1.08
TSLA - Bought it at 30.38
PEIX - Bought it at .3734

The only company that I probably plan on selling once I am satisfied with its return would be PEIX, at this point it has not made me a single $1 but its my first penny stock, I am waiting for it to simply explode in price or see a gradual climb toward at least the $1 mark. PEIX has until June 2013 to be somewhere near the $1 mark before the Nasdaq evaluates the stock and may possibly kick them out of the NASDAQ. (sucks)

TSLA is a long long term investment, the company has potential, it is getting orders, building charging stations on the eastern coast of the United States and their dealerships are quite interesting as they are positioned in malls, which is not a common place for dealerships to be.

MTG has been doing great, I wish I purchased more than 100 shares in this stock. If I had invested say $10000 in MTG I would be sitting at $30000 right now. But I don't mind, the investment is doing great.

 So far everything is going smooth and I plan on making more investments down the road, I find this just as hard as trading because I have to go through sometimes $300-$400 swings on a daily basis, sometimes I wake up to being $300 richer and the next day I am -$250. I have gotten use to this, really you just have to almost forget about them, forget about the swings if your horizon is long term. There is a rule in investing which is to buy more on pullbacks, so look for those opportunities and capitalize on them.

Day Trading Logs - Do Not Over Trade - Rule

*Right Click Chart, Open in new Tab*

So today was another day, started off nice, I looked at all the stocks that I felt comfortable trading that suited my plan, I had one in mind and it was CY, I wrote down exactly what I wanted to do with it in my plan prior to the market open and it did just that! I had this bad boy on lock, it went up to where I felt comfortable shorting and without hesitation I shorted the stock. It fell and I felt good because my plan worked out perfectly fine. I shorted only 100 shares, I was up $35 bucks (doesn't seem like a lot but you must consider its a $10 stock and catching .35 cents out of it is a respectable play.

Then when I felt comfortable that this stock was on my side and I felt like taking some profits, I was ready to cover 1/2 my position and let the remaining 50 shares ride the slow bleed all the way down to the $10 range. And what happens? Instead or purchasing 50 shares back, I purchase 500! I was like HUH? Not again! I panicked and covered my entire position, still made $35 bucks though, but now I incurred commissions on 1000 shares which cost me $5 for no reason!

Then came trade number 2, this is what really made me mad, after my first successful trade I really didn't feel like trading, I honestly didn't, I was happy,  I was doing my review and just zoning out. The Chat room that I am in called a play, I missed the play because I was so delighted with my own trade, I thennnnn entered the play late.

I BROKE my own rule: DO NOT ENTER TRADES LATE

I felt like a kid left out,  I wanted more money, greed took over. This second trade did not go good for me or the chat room, I have nothing against the chat room because experienced traders know there is no such thing as a wrong trade, as long as you follow your plan, every trade is the right trade. But when you DO not follow your plan, you lose your mind, money and also control.

What I learned today: Follow your Plan