Fear and desperation appeared in VARD when it went up to 0.52 and plunge down again.

Let us not forget that the stock market is a manic-depressive beast. If a patient does not kill himself during a depressive episode, he will recover and further down the road he will have a manic episode.

This is what happened to VARD.

I traded VARD many times. May 2014, Brought $1.07 and sold $1.125 with a decent gain.

Last weekend, when I was doing my weekly homework, I found VARD is trying to form a bullish divergence on the daily chart.

I brought the stock on Monday 7th Apr at $0.47. I had done my weekend homework and keeping an eye on VARD that the share prices must stay/move above 0.465 for divergence to form.

On 6th Apr, VARD closed at 0.465.

So next day, I brought VARD at the pre-opening at $0.47. But price did not move for the rest of the day.

On Tues 8th Apr, VARD gap up and opened at $0.485 and closed at 0.49. This is showing VARD has buying momentum has as it closed higher than previous day high.

On 9th Apr, VARD started to showing accumulation when it was 0.50.

In the morning, I placed an ordered to sell at 0.525. And price started to move higher 0.505,0.51.0.515,0.52 – which would earn me $2,500.

When VARD softened and seemed to turn down. I quickly cut my target to to 0.51

My mistake was getting out too early, other than that I was pleased with this trade. This trade make a gain of $2,000 profit .

When I sold every positions, I will look at the counter party inforamtion. It does pay off to look at who are the buyers and sellers. But this is just an additional information for me to take extra precaution.

Indeed, the buyer of my VARD position was MERLYN, an institution/hedge funds.

The next day, I re enter VARD at $0.525

VARD rallied from 0.525 0.56 and closed at 0.55. Today, 13th Apr, VARD gap up 3 cents but start to show some weakness, Looking at MACD , I am not an enthusiastic bull.

When the stock appeared to stall in its resistance , I was quick to take profits. Another factor - it is a good swing trade, a gain of $2,250.

It pays to have two goals for every trade: to make profits, of course, but also to advance our knowledge and expertise.

We can't reach the first goal every time, but we can learn from every trade, whatever its outcome.

Learn to become a better trader, and profits will follow.

Talk to you soon,

Divergence Trader

The post How I Managed My Trade – VARD (Long) appeared first on Divergence Trader.