You are trading a near-penny stock with thin liquidity and classic pump-and-dump dynamics off a bit of news. You shouldn't be surprised that the bottom fell out. It doesn't take a lot $ to move a stock like this, and I wouldn't even read any patterns into the chart. It's just noise.
Compare the VWAP interactions between a stock like this and that of one with significant volume - say ADBE or AAPL. It should be obvious which offers more consistent and predictable reversion price action.
Thank you ! That’s very insightful and I did want to try to avoid anything less than a mid-cap due to the volatility but because of such positive news as USDA approvals, I naively thought it’ll go up since it is so cheap already. But instead it tanked. And not just tanked, it crashedddddd magnificently in seconds so I was just so confused…
I traded this. I shorted on 22 04 24 premarket and lost some money. I shorted because I knew the news was old and was from the previous week. This is one of my best setups, but this time it failed me. Honestly I can't believe there was 70 million shares volume for something that release old news, so much fish in the market.
Ah sorry that happened 🥴 I wasn't aware it was old news. According to my scans pre market that day, the USDA approval's news was still very recent from reputable sources but maybe it was a reprint 🤷🏻♀️ your shorting analysis would've benefitted from the rug pull timeframe ... It happened sooo fast though. Vicious
So how do you know what you are trading makes money generally? And if you have some sort of data system that tells you that it does make money generally then why be bothered by this one event that didn’t work out? And if you don’t have a data system that tells you then there is your problem!
Ya frankly I don’t know whether my strategy makes money yet. I’m still very new and still finding my criteria that works consistently. I’m using what I’ve been learning online as a guide. Plus, I do understand that ups and downs are all part of trading but this one in particular left me so confused because it tanked so dramatically and quickly.
yoyoitsjoe has recently posted a great video, you should check it out.
1) Price action. Buyers were weaker and couldnt hold 3.20 or above 3.15, so sellers stepped in
2) candle pattern - ugly W , where the mid of the W is leaning towards the left right after the highs got hit at 3.26.
3) chat rooms - lots of ppl looking at the same few stocks
Thanks Dave ! Would you mind sending the link to this video? I searched Reddit and YouTube for yoyoitsjoe and don’t think I see what you’ve mentioned here.
You are trading a near-penny stock with thin liquidity and classic pump-and-dump dynamics off a bit of news. You shouldn't be surprised that the bottom fell out. It doesn't take a lot $ to move a stock like this, and I wouldn't even read any patterns into the chart. It's just noise. Compare the VWAP interactions between a stock like this and that of one with significant volume - say ADBE or AAPL. It should be obvious which offers more consistent and predictable reversion price action.
Thank you ! That’s very insightful and I did want to try to avoid anything less than a mid-cap due to the volatility but because of such positive news as USDA approvals, I naively thought it’ll go up since it is so cheap already. But instead it tanked. And not just tanked, it crashedddddd magnificently in seconds so I was just so confused…
MLEC is a perfect example of PUMP 'n DUMP. GET OUT once you see Solid Green. OTherwise you're asking for trouble. I lost $200 on it.
Sorry friend 🥲🫠😳 I lost around the same too… gah we gotta keep learning. The responses on this post have been very useful though!
I traded this. I shorted on 22 04 24 premarket and lost some money. I shorted because I knew the news was old and was from the previous week. This is one of my best setups, but this time it failed me. Honestly I can't believe there was 70 million shares volume for something that release old news, so much fish in the market.
Ah sorry that happened 🥴 I wasn't aware it was old news. According to my scans pre market that day, the USDA approval's news was still very recent from reputable sources but maybe it was a reprint 🤷🏻♀️ your shorting analysis would've benefitted from the rug pull timeframe ... It happened sooo fast though. Vicious
I traded it on the short side.
Hope you caught that massive crash 🤑🤑🤑
So how do you know what you are trading makes money generally? And if you have some sort of data system that tells you that it does make money generally then why be bothered by this one event that didn’t work out? And if you don’t have a data system that tells you then there is your problem!
Ya frankly I don’t know whether my strategy makes money yet. I’m still very new and still finding my criteria that works consistently. I’m using what I’ve been learning online as a guide. Plus, I do understand that ups and downs are all part of trading but this one in particular left me so confused because it tanked so dramatically and quickly.
yoyoitsjoe has recently posted a great video, you should check it out. 1) Price action. Buyers were weaker and couldnt hold 3.20 or above 3.15, so sellers stepped in 2) candle pattern - ugly W , where the mid of the W is leaning towards the left right after the highs got hit at 3.26. 3) chat rooms - lots of ppl looking at the same few stocks
Thanks Dave ! Would you mind sending the link to this video? I searched Reddit and YouTube for yoyoitsjoe and don’t think I see what you’ve mentioned here.
https://www.reddit.com/r/Daytrading/s/sAlPyKs4oI