How Trading Notes Can Increase Your Profits

 | Jan 13, 2018 | 10:00 AM EST
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Stock quotes in this article:

mark

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xnet

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gsum

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aaba

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aimt

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apti

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baba

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bb

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blue

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bsti

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cara

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cmcm

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cnet

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feng

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flxn

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gcap

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ge

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grow

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hlx

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hmny

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hx

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ichr

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iclk

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iin

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izea

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jp

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lx

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mjx

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mtem

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myo

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nhld

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nmrk

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noah

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nrz

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nxtd

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ostk

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pyds

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qd

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sedg

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sgmo

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spxs

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utsi

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wuba

One of the biggest mistakes that novice investors and traders make is that they are too passive. They don't manage their positions. They stick with losers too long and don't take profits when they should. Inertia is why so many people don't effectively profit in a very strong market cycle like we have now.

The best solution for this problem is to systematicly review the stocks you are holding and those that you might want to buy an a regular basis. View them objectively and develop a game plan for them. What was reasonable yesterday may be unrealistic today. If you want to buy and hold for the long run that is totally different approach.

In formulating plans one of my pet peeves is price targets. It seems like a simple idea. Figure out how high a stock can go and then set back and wait for it to happen. That would be fine if conditions never changed, but the stock market is dynamic not static. We have to constantly evaluate a situation and adjust as conditions changes. We must stay vigilant and constantly adjust.

I find it helpful to write out trading notes on my stocks. It isn't enough to do this mentally. You have to physically make notes, so you are forced to take a hard look at each position and not gloss over them.

Here is a truncated version of my trading notes from last weekend. As you can see they were very helpful in managing some trades in stocks like Remark (MARK) , Xunlei (XNET) and Gridsum (GSUM) . It also helped me mange other stocks that did not cooperate.

I'll be working a new list this weekend at sharkinvesting.com

Trading Notes

January 7, 2018

Altaba (AABA) -- sold into strength, look for remount. Trades in tandem with BABA

Aimmune Therapeutics (AIMT) -- support at $36. Data coming soon. Watch for positive anticipation

Apptio (APTI) -- consolidating. Support around $23

Alibaba Group Holding (BABA) -- sold a little early. Extended as it tries to breakout

BlackBerry (BB) -- attracting attention after Barrons plug. Has some mo, but extended

bluebird bio (BLUE) -- filled gap, support at $50 day. Maybe a fish play as it consolidates

BEST (ADR) (BSTI) -- tax selling bounce, coming off lows. Good numbers

Cara Therapeutics (CARA) -- fizzled back into base. Needs to move over $14 on volume

Cheetah Mobile (ADR) (CMCM) -- Big volume break, watching for momentum to build. Good sector

Chinanet Online Holdings (CNET) -- crazy mover. Traders likely to give it another try eventually but extremely random

Phoenix New Media ADR (FENG) -- very nice looking pattern but stock has not developed strong momentum. Tends to be one and done

Flexion Therapeutics (FLXN) -- drifting, no mo

Gain Capital Holdings (GCAP) -- consolidating well, watch for another surge on move through $10

General Electric Company (GE) -- great tax loss selling bounce play

U.S. Global Investors, . (GROW) -- disappointing trader. Still can't get any mo going

Gridsum Holding - ADR (GSUM) -- chart needs work. Needs to consolidate over 200-day around $10 but potential to be a mover

Helix Energy Solutions Group (HLX) -- extended-sold early. Watch for pullback to support

Helios and Matheson Analytics (HMNY) -- finding support but battleground name. Potential squeeze but not much movement

Hexindai - ADR (HX) -- finally came off lows but lots of flippers. Now needs to hold $12 on closing basis

Ichor Holdings (ICHR) -- chart is poor but trying to regain 50day. $28 support would setup move into eps. Great numbers

Iclick Interactive Asia Group (ICLK) -- initial coverage coming in a week. Seller has been sitting on it. If he clears, a move to $10 should trigger mo

IntriCon Corporation (IIN) -- painfully thin but consolidating nicely

Izea (IZEA) -- sold into strength on Friday but may be worthy of remount

Jupai Holdings (ADR) (JP) -- flipped last week. Watch for pullback to support

LexinFintech Holdings - ADR (LX) -- peculiar trading following strong move. Support at $14. May be good into initial coverage from Goldman

Remark Holdings, . (MARK) -- chugging along well. Took some partial profits. Watch for add points. $11 support

ETFMG Alternative Harvest ETF (MJX) -- great trading vehicle. Trade around core. Should continue to garner attention

Molecular Templates (MTEM) -- Breakout Friday, watch for another push but may need to pullback first

Myomo (MYO) -- trying to come off lows. Needs to hold $3.75 levels. Add over $4.20 or so

National Holdings Corporation (NHLD) -- nice surge on volume. Looking for support now and another setup

Newmark Group (NMRK) -- thin trader. Initial coverage coming

Noah Holdings Limited (ADR) (NOAH) -- sold. watch for another setup and push to $48 level.

New Residential Investment (NRZ ) -- div play. Needs to regroup at 50day

NXT-ID (NXTD) -- slow fade, watch for support at $3 or so

Overstock.com  (OSTK) -- has big mo on increased volume. A buy on dips or consolidation

Payment Data Systems, . (PYDS) -- another bitcoin play looking for support watch for a higher high

Qudian - ADR (QD) -- China fin tech developing solid support at $12.

Solaredge Technologies (SEDG) -- Downgrade killed pattern for now. Watch for support at 50-day $36

Sangamo Therapeutics (SGMO) -- Consistently sold into strength. Buy on pullbacks to base

Sanchez Energy (SN) -- small oil fizzled. Watch for support $5.20

Direxion Daily Large Cap Bear 3X Shares (SPXS) -- getting crushed on index mo. Watch tracker position. No reason to add until market weakens substantially

Social Reality (SRAX) -- nice setup here. Potential stock of the week

Sorrento Therapeutics (SRNE) -- worked well, needs to rest and consolidate

Sarepta Therapeutics (SRPT) -- pullback to support at 50 day on increased volume. Watch for support at $52 or so

Seven Stars Cloud Group (SSC) -- same pattern as other bitcoins. Slow fade, looking for support

Servotronics  (SVT) -- trades too thin but good support, Probably needs news

Telaria (TLRA) -- Setting up well watch for move over $4.50 and a higher high

Twitter (TWTR) -- setting up for another run at $25

Net 1 UEPS Technologies (UEPS) -- potential stock of the week. At top of range, new closing high. May show on momo scans

United States Natural Gas Fund, LP (UNG) -- weather trade is over

UTStarcom Holdings (UTSI) -- watch for basing and a thrust to $6.50

Veritone (VERI) -- basing, a couple suck in moves so far. Needs move over 50 day, Check earnings and fundos

58.com (ADR) (WUBA) -- sold into strength on failed breakout. Watch for regrouping

Xunlei (XNET) -- Surged on Barrons story about big MS position. Should be a good one if holds support at $18 or so.

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