Lessons learned from trying to day trade this stock.
Catalyst for selling. Saw stock was up big time around 2.80 when the market opened up and noticed it was up about 3.00 in the pre-market. Did an investigation and found out the company put out a statement about un-audited revenue and earnings.
I had bought HTGM on 6/15/2017 as recommendation from day trading room. It was a bad call because the trade went south and never recovered until 1/4/2018. Lessons learned never ever do a trade unless you have done your due diligence. Had I done my due diligence I would have saw the HTGM issues a S3 statement 2 prior about diluting the stock. 424B5 statement on 6/1/2017 for $40,000,000 in stock. They had sold 2,468,104 shares of stock from a previous dilution on 4/13/2017. The document talked about the stock being $3.91/share and how investors would experience as immediate dilution of $2.40/share, which implies the stock price would only be worth $1.51.
1. I made a major mistake by doing (buying at 2.48) instead of waiting.
2. Another mistake I made was not scaling in buying 100 shares, the loss would have been a lot less.
3. Not using practice simulator for stock trading.
4. Not taking a loss.
5. Not studying the chart pattern of the stock to see if it was a good set up.
6. Buying a stock that was overbought.
7. Not checking the proper indicators with moving averages in the right set up, where the stock was above its 200 day and 50 day moving average.
8. Not checking to see if the stock was over shorted.
9. Not checking the pricing history and the trend of the stock.
10. Not looking for porcupine spikes in the candlestick to see if investors would hurry up and dump.
On 6/15/2017 the opening price was $4.19, previous closing price was $3.15. The close was $3.12.
I got greedy and thought I would make a killing for $800. I end up keeping capital tied up for 7 months. I had to dig into other cash reserves to continue trading. I also wasted hours of time watching this stock and waiting for it to come back. I did manage to make a profit of $575.
I wish you all luck in trading and going long on this stock.
