PennyFarmer Crops to Watch 06/10

Hello fellow penny farmers,

I hope you all harvested a ton today. I had two trades in $OREX that averaged $150 in gains for my paper account. Unfortunately that decent action was squashed by my overnight trade in $GEVO which never recovered from its fade at my entry of $1.11 a share.

I’ve come to realize a couple things about how I trade and found that certain time windows don’t work for me. Overnight plays being one of them. I like the concept of an overnight play not counting as a day trade and if you nail it, you’re at a prime entry… But it seems that most of those types of trades for me turn into losses and I don’t like the extra risk of not being able to control the A/H or P/M. Maybe later on I can refine that strategy through further paper trades but for now I’m going to pass on them. Trading the opening is hit and miss for me as well. This is more about my sleep schedule and family than trading ability. I’m in Pacific Standard Time which puts the market open at 06:30am, couple that with getting my kids up and going, then driving them to school… It is difficult to enter / exit a trade on my PC. I can trade mobile but the charting and indicators are limited. I will monitor and I’m open to morning trades but I need to be really careful.

For me, the last hour (power hour) is my kill zone. I have the free time without distractions to trade on my PC. True the gains are smaller, but I’m aiming for 2% to 5% gains and will walk my stop losses up as price action moves into the close, so the small gains is not that big of an issue for me. I also like that there is a wealth of action to look at, solid intraday support and resistance levels are usually there, volume is there, news/catalyst is usually there, and the price action is fairly predictable based on the chart patterns. You have your afternoon fades and EOD squeezes. I’m also able to use my watch list as well as several sites that track the biggest percent gainers for the day.

So with that said, my trades today consisted of closing out $GEVO for a big loss. The P/M was promising but it never returned to the levels that would have gotten me out of the red. I attempted a momo play in $EYES for a push to the close but my limit order was taking too long to execute and I saw that the chart pattern and entry point was changing on me so I canceled the trade. I then made two plays in $OREX during two smaller intraday breakouts around the $0.50 - $0.51 range. Trade one netting gains of $400 and trade two a loss of $250 for an average profit of $150.

Remember Fridays can produce some big short squeezes so be cautious if going long in something. As always, keep planting the seeds of education so you can grow your pennies.

Main Crops:

TPLM, 92.19% EOD. This had a big run today with not a great catalyst. Some financial info on YF but nothing to me that looks like it justifies the action of the day. It was on my watch list for today, tomorrow would be day 3 of a run if it continues up. I think this could have one more day before falling back to old levels.

JAGX, 76.52% EOD. This had huge spike in the morning on news of Aspire Capital Fund entering a $15m commons stock repurchases It faded from 115% gains to 76% at the EOD. I’m short bias on this one though I do think it can run again early in the trading day before fading more.

BLPH, 52.79% EOD, No new news to drive the move but it had a nice morning spike and then pretty much held the level throughout the day. I’m short bias on this one just because there doesn’t seem to be a good catalyst. Definitely look at the technicals on the charts first before entering.

PRZM, 52.04% EOD, This had a nice afternoon run but I don’t see a catalyst to warrant it. I think it can run more but I wouldn’t be surprised to see if fade into the EOD.

ZDGE, 40.55% EOD. Financials are acting as a catalyst here. It had good price action today with two distinct spikes. I’d be watching the charts with this because if it breaks out past today HOD it can really rip, but if it isn’t able to it could form a head and shoulder patern.

GBR, 35.61% EOD. No new catalyst to warrant the action. I’m short bias on this one but I’d make sure the chart shows a clear break down.

EYES, 22.34% EOD. Noticed that people were pushing an older news article on this one. The price action was good but I think it may be short lived.

Side Crops:

CBIO, KOOL, BEBE, CERE, GIG, CJES,

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Penny Farmer Crops to Watch 06/09

Today was pretty good for me. I’m long overnight in $GEVO and will be looking to sell into a pop in the AM or cut my losses. I also made a quick in and out trade of $OREX as it was squeezing into the close… a 7 minute hold netting $600! That should be as motivating to you as it is me. I’m constantly planting the seeds of education so that I can grow my pennies, I hope that you too are a penny farmer.

Here is my watch list (Crops) for tomorrow. Happy Trading!

Main Crops:

BSPM, 200.75% EOD. This had a huge run today after financials and high volume. There doesn’t seem to be much support on the chart, until the $5 to $5.50 ranges on the weekly chart. So if it can crack the $5 level and hold, then this may run a little more. But I’m more short bias on it because I don’t feel that the move today was warranted by the new catalyst.

GEVO, 59.08% EOD. This saw a nice rip today after news that two Alaska Airliners were using their fuel for the first time. There is the potential that the trial run could lead to a much larger contract with Alaska. I think that may be at the heart of the run today. I’m still long from $1.11 when I bought in for a breakout of $1.12. I was looking to exit when I hit a gain of 3% or so but the limit order didn’t get filled. It fade into the close so now my position is in the red, but I can see this possibly gaping/running in the AM.

OREX, 51.56% EOD. This had a slow grind up most of the day and then a squeeze into the close. I managed to trade the squeeze for a quick 5% gain. There is news out so the catalyst is there. This could move further up tomorrow before it dumps.

TPLM, 48.84% EOD. This had a nice move today with further gains in A/H. This could continue higher if the oil industry cooperates. I’m long bias on this at least for another day or two.

Side Crops:

BLPH, CJES, RNVA, BEBE, IMNP, BLIN, GBR,

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(HTMM) Video 9 Overview: Tim in a Nut Shell

Sorry I haven't posted an overview of video 9 for Tim's "How to Make Millions", I've been focusing on my trades and honestly there are a few things in my life that may force me to switch from working and trading on the side to just trading full time... even though I don't think I'm 100% ready yet.

At some point I'll go in depth on my family's money issues. We all have challenges in life and the last few years have really made it clear that I need to get going on pushing towards financial freedom. The longer you wait the harder it becomes. Plus life is short and I want to provide my family with the best life possible.

Anyways, back to the video overview:

As with videos 1 through 8, 9 mentions several times that you need to cut losses quickly. Remember, Tim and his most successful students only win 60% to 70% of the time. That means those losses must be managed because if you are loosing big 30% or 40% you're going to cancel out your wins or worse, you're going to stay in the red and slowly bleed out your capital.

One thing Tim mentioned before going into his "Summarized Strategy" was to make sure you are not anticipating the breakout. You should wait for conformation first. This is something that I've been guilty of and I've had potential breakouts fade on me.

Strategy:

1. Keep it simple. Tim trades with a laptop and smart phone. You don't need the bells and whistles with twenty screens.
2. Tim stays 100% cash most of the time.
3. Always looking for trades but not falling for FOMO. He treats it like he's a retired trader.
4. Focus on one trade at a time, aiming to make a few hundred or thousand at a time.
5. Trading is not like a salary, it is opportunistic in nature so look as profits over time.
6. If the breakout is weak or doesn't happen get out.
7. If the breakdown is weak or doesn't happen when shorting, get out.
8. Be able to trade long or short, it doubles the opportunities
9. Focus on netting the meat of the move, no perfect trades
10. Always look for the big percent gainers, 1day, 3day, 5day, 2-4weeks
11. Avoid non-volatile stock that have dropped 20% to 50% as they are too unpredictable.
12. Look for solid news catalyst and solid chart. With both in place your risk is reduced.
13. Plan and look for risk reward, not the total profits.
14. Stick to your plans and focus on the overall goals
15. No leverage or taking too long of swings
16. Don't try and force trades to match your schedule
17. Slowly build your account.
18. Look to make $1k to $2k average per trade and rinse and repeat.
19. Never force trades
20. Ignore long-term investments and make your money work harder for you.
21. You don't have to short, but you should learn about it and how shorters see the market
22. Take it one trade at a time, don't get overly emotional and remember that this is a journey.

You'll notice that Tim tends to repeat certain concepts throughout the videos, blogs, twitter posts, youtube etc... Cut losses, don't force the trades, educate yourself, its a journey.

I'm working on taking notes on video 10 and will post the overview soon.

In the meantime please feel free to follow me on:

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PennyFarmer Crops to Watch 06/07

Crops for 06/07byPaperAccount

Never too early for branding lol. Since my trading blog is pennyfarmer.com I'll go ahead and call my watch lists crops... why not right?

Main Crops:

HMNY ~ 549.16% EOD, This had a huge rip today from $1 range all the way to the HOD of $10! This was due to news of a pending merger and earnings. This could go either way honestly, it could still have a lot of upward momentum as late comers like myself look to jump in for a day two rip, or we can see this dumping because it went up too fast for its own good. Either way it is worth watching and is top on my list for tomorrow.

I missed the run on this today. I left the house to take my son to school and about 5 minutes later it broke out and ripped to $15. I hate missing a good play, especially when I was watching for it. But you can't force trades to fit your schedule and you have to realize that trades come and go, there will be another runner. Also wasn't able to short it into the close because the ToS platform didn't have shares to short. But I saw it and would have nailed the trade if I was able to get in.

VBLT ~ 72.54% EOD, This spiked in the morning due to news of positive cancer treatment trials. I’m actually a little short bias on this stock because it seems that many times a runner that fades into the close will dip further the following day. Not sure if I will trade this though.

Saw a decent short play but wasn't able to get shares in the ToS platform.

TPUB ~ 17.74% EOD, This had a decent run today with the news exposure on the Gannet bid thing. It’s a bit pricer than stocks I probably should be focusing on but with this being a major newspaper with widespread exposure it could see another day of momentum as it will likely show up on peoples scanners and news feeds today/evening.

I didn't see a good play here today but I'm going to keep it on the watch list. There was another article out today on a 16% owner buy in.

Side Crops:

URRE, CJES, AMRS, NR, ARGS

As with many of my picks I spotted some good short plays but was unable to find shares to short so I had to sit them out. I was able to get in ARGS for a small 2.85% gain.

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Not the Start I was Looking for $CJES $FMSA

I hope everyone had a great weekend. I spent some much needed time with the family doing a few fun things like getting our vegetables planted in the garden and a quick fishing trip in with the kids.

I'm excited that my new social media account at Instagram reached 50 subs and my Twitter account bumped up to 150 subs... Yes, I realize that its small compared to others and while I could sign up for some service that inflates your account subs I'm not doing that. Each of my subs are real and I hope to grow that base more and more.

My trading day started out decent but I ended up doing a couple of dumb things that cost me roughly $1k to my paper account.

My first trade was long with $FMSA in the morning to catch the breakout above $1.79. I set a hard stop at $1.64 risking $0.11 a share. My entry was good and the setup was solid, but it faded on me and I was stopped out. It did test a new HOD of $1.88 a short time later so I missed the breakout by just a little bit of time. I'm happy that the stock did what I thought it was going to do though.

My next trade started out well too, and if I had been smart about taking profits I would have been done for the day with $400 to $500 in gains.

I really need to work on being okay with taking profits when I hit 4% to 5% and should be happy that I'd be making more with a few clicks of a button than I do working a full day at the school district.

$CJES was looking like a breakout at the $0.65 level was about to take place and I got in right at $0.65. It reached 4% and 5%, even 6% briefly, but I failed to take the profits because I kept hoping that it would hit 8% or 10% gains as we went into the afternoon. That was a big mistake because it dipped on me and I was stopped out at $0.62 which took my $500 gain and flipped it into a $300 loss.

Then I was REALLY STUPID and gave in to FOMO and Revenge with another entry at $0.64 and saw it fade to my stop at $0.60 for a $600 loss.

So here are Pros and Cons of today:

Good: My entries and seeing breakouts were good.

Good: Setting stop losses and sticking to them.

Bad: Failed to take profits when I hit 4% and 5% gains.

Bad: FOMO / Revenge traded

Side Note: A fellow trader on Twitter https://twitter.com/TraedingBad made some going points and suggestions on my trading, such as needing to take my profits, trading the Awesome Oscillator.

For those who don't know what the Awesome Oscillator (AO) is take a look at the first indicator just below the candles sticks on the charts I've posted here. Like the MAC-D it tracks the momentum of a stock.

I've always liked how simple of an indicator it is but I don't think I've been taking full advantage of it. I think tomorrow I'll try using it more to gauge my entry and exits. 

Here's a useful link on the AO in case you're interested to learn more about it.

https://www.tradingview.com/stock-charts-support/index.php/Awesome_Oscillator_(AO)

What Does a $5,500.00 Win in $EBIO Mean to You?

Yesterday I entered a position in $EBIO to catch an afternoon breakout and hopefully a run into the close. I nailed the entry and was in right at the $1.85 breakout level and watch it rise to the $1.90 to $1.95 ranges. I started to lose some strength and I decided to exit... but the limit order didn't fill by the EOD and as the price faded I was stuck with an overnight trade.

I was prepared to exit as soon as the market opened and just take the loss.

But then the overnight issue became a blessing in disguise and it gaped up in the morning. I then started moving my hard stop loss line as the price moved the stock higher.

I was eventually stopped out at $2.40 but that left me with 29.73% gains and $5,500.00 profits on one trade.

Of course, we're talking paper trading here so I'm not actually $5k richer.

But with that said, this trade does hold a lot of value for me because it confirms that having financial freedom is truly possible.

I attempted another trade today looking to catch an afternoon breakout in $CLF at $1.65. I was able to get a good entry and it appeared that the breakout was going to take shape. It did pop to $1.69 briefly but then quickly fell and triggered my stop loss. In all, the trade was well executed and I cut losses with about a -1% loss.

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Looking for my Groove $CLF $IMNP $EBIO

I'm finding myself in a bit of a dilemma. Getting into a position at the EOD and holding overnight is a great way to avoid the PDT rule, but I'm not seeing a consistency with those trades. I don't like how you basically are losing control of the trade because any number of things can take place overnight.

That leaves me with a couple day trades a week if I want to stay away from violating the PDT.

The first hour of the trading day and the last hour of the day are were most of the action is. On the west coast that's a schedule of 6:30am at the open and 1pm at the close.

My family schedule doesn't match well with the opening and I'd truly need to stay up throughout the night to ensure that I don't miss it.

I also drive my oldest son to school in the morning, start work at 11:00am, and spend most of the trading day on my mobile.

I'm going to try this method for a bit:

7:30 -8:00, scan my watch list for any plays that are moving and if there is a solid entry ie breakout

8:00 - 9:45, monitoring trade on mobile while taking son to school and errands

9:45 - 10:00, chance to check trades on ToS with indicators

11:00 - 1pm, I'll be mostly on my mobile at work and if I don't have a trade in play by 11:30 I may look for an afternoon position.

I don't plan on holding overnight and I'm looking for smaller percent gain to increase my odds of walking away with a profit. I'm going to start with a goal of 4% to 8% and taking positions of roughly $10k. That will allow the smaller percent gains to mean more.



I have no idea if this will prove to be helpful with creating some consistency with my trades but I just don't feel like the overnight hold is working for me.

Stay tuned!

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