This trading log covers a long position I took on stock symbol PCSA (Processa Pharmaceuticals Inc) and will outline the reasoning behind each move before, during and at exit of the trade.

Live Trading video:

PCSA long position – $54 profit in 8 minutes, live recording with decision making process and notes

Finding the right stock to trade:

Market has just opened and the 90%+ gain and 8m+ volume attracted my attention to PCSA. 

I planned to go long at a suitable price with good risk reward ratio.

Find the right entry point and risk levels:

In order to find a good entry point, I need to not only focus on 1 minute chart but also look through the daily chart to find significant resistance and support levels. This will help plan my entry and exit better.

There are no recent high trade volume days for immediate support and resistance levels. 

However, there were key swing lows at $5 and $6 about 14 months ago which may be watched and tested as a reference by other traders. Some levels to keep in mind.

I decide to trade PCSA at around 3.90 which is 3 days prior open price. 

My risk / stop loss will be 3.60 which is today’s open price.

Timing the entry:

It is hard to hold your nerves and sit on your hands as you watch the price gain strength in your expected direction. You worry that you will miss out on the move. But entry timing with good risk reward ratio is everything in day trading. 

I kept telling myself I CAN NOT jump the gun.

After reaching a new day high of 4.40, the price finally starts to show signs of weakness immediately after – which is exactly what I have been waiting for. 

I wait for the price to find some form of support and show first signs of bounce.

As it finds support in the 3.80 region and close to 3.60 which is day open price, I start to feel more confident with my risk level at this price region. 

I place an order at 3.88 and get filled instantly.

Planning the exit of a day trade:

At this point, I start planning where I want to exit half my positions (100 shares) just under the psychological resistance level 4.00 at around 3.97/98. 

And the rest of my shares between 4.20 and 4.40 region depending on the strength and how the price reacts at these levels.

I keep watching the price on 1 minute chart intently as some form of support area starts to form. The RSI on 1 min chart also is in oversold territory which gives me some confidence that the price will bounce in the very short term at the very least.

Exiting the day trade:

The price broke through my first target price of 4.00 levels in one solid move with no hesitation which gave me confidence that 4.20 and 4.40 region will now be at play.

But unfortunately, I had to answer an urgent phone call at the time of this trade and as I was on the call, I ended up exiting all of my position at 4.13.

Note to self: Manage distractions!!

The price continued to test 4.40 level and eventually reached 4.79 and got halted! 

I usually place sell orders  5/10 points below halt level for my second half for stocks with this level of momentum and strength. 

I could have exited second batch of 100 shares at 4.65 region making $106 instead of $54. ($27 on 100 shares, and $79 rest)

Summary of learnings and lessons to take into the next trade:

– Time your entry and be patient, it will pay off
– Keep your risk / stop loss close to entry
– Phase your exit and be patient
– Hold your nerves and minimise distractions

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