TM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
Image Source: PixabayWe made it to the end of a holiday-shortened week. It was a slow week of day trading, but I’m happy with how it finished. Let’s break it down in today’s recap.
My Trading Week
This week was slow, which isn’t surprising given that it was a four-day week with the Memorial Day holiday on Monday. During holiday weeks, the big money players often take longer breaks, reducing liquidity and volume in the market. It’s those of us day trading every single day who feel the impact due to less volatility and liquidity, making it harder to make money. Here’s how my week went:
Averaging around $1,500 a day, I made about $4,500 this week. Not a home run, but a solid contribution to the month’s earnings. For May, my gross profit before fees and commissions is around $40,000. It’s not my biggest month, but a decent one, and I can’t complain.
Friday’s Trading Highlights
When I sat down on Friday morning, the first thing I noticed was Latam Logistic Properties, S.A. (LPA), which had crazy halts and no liquidity. The spread was wild—$387 on the bid, and $473 on the offer. It was too risky to trade, so I stayed away.By 9:00 a.m., Summit Therapeutics Inc. (SMMT) squeezed from $8 up to $10. I observed a micro pullback and got in at the top of the move. It hit $10 and then pulled back. I ended up only $128 net on this trade. It didn’t give any more setups, so I moved on.Novo Integrated Sciences, Inc. (NVOS) was the leading gapper that morning. I got in as it broke over $1, but stopped out for a $50 loss. I tried again during a red to green move, but it didn’t work out. I ended up down $227 on it.Nano Nuclear Energy Inc. (NNE) hit the scans and started squeezing at the open. I got in for a scalp trade, hit my profit targets, and then it reversed. It ended up selling off, and I was glad I took my profit.
Market Observations
Overall, the market appeared to be pulling back a bit. This week, the slow day trading environment was evident, especially on Friday. The overall market is always moving, and this week was no exception. While we are in a bull market, it doesn’t always translate to exceptional trading days. For example, in March, it was tough despite an upward trend. April was much better, while May turned out to be decent but not exceptional.Friday’s trading wasn’t very active. There were some stocks moving, such as SolarWinds Corporation (SWI), but nothing really caught a bid. By the end of the day, I decided not to push my luck with risky trades. We usually don’t get great headlines on Fridays, especially at the end of a holiday week.
Conclusion
Friday was one of those days where if you weren’t quick, there wasn’t much to get. As always, day trading is risky. My results aren’t typical, so manage your risk and take it slow. Have a great weekend, and I’ll see you back here on Monday.More By This Author:Hunting For Gains In Penny StocksGameStop Frenzy ReignitesAPM Case Study And Trading Recap
