Week 29 - $ANI $IMI Trade Dissection x The Unexpected Encounter

I was on a 3-day full purge this week. I had no trading activity after selling my positions. I unplugged from my online troll account and avoided any stock-related activity in real life. No studying, no charting, no stock updates, no presence of the stock market for 3 days. This was REALLY HARD for me. It was my first time doing this since I started trading. I didn't even log-in to my COL and FMS accounts. 

Why am I doing this? I am preparing myself for something 'bigger'. 
I want to neutralize my mind and I want to empty my cup starting this week. 

You might be wondering why, 
well, you'll know more at the end of this blog entry.

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So first things first. As promised, I'm sharing my trade dissection for $ANI and $IMI. These 2 trades are both breakout plays and almost have the same setup. Both stocks are in uptrend: AOTS in daily & weekly (or what we call PUA) and a multi-yr high setup. 

Based from the topics discussed last ZFT Live Rift, these setups are high probability trades. 

Multi-yr high breakouts can be perceived as "BOSS Breakouts".

While there's a strong resistance rejecting price action, 

there's a probability that it can create an explosive reaction 

once that resistance is broken. 

- Mesino

Let's begin...

$ANI and $IMI Trade
Setup               :  Breakout Play
Conviction         :  Multi-yr high | AOTS daily & weekly | SMA20 trail | RSI70 daily BO
Trade Objective : Swing Trade / Trend-following Candidate

$ANI Trade. July 3 to July 18, 2017. 11 Trading Days Hold. +10% gain
$IMI Trade. July 4 to July 18, 2017. 10 Trading Days Hold. +13% gain

$ANI Daily Chart

$IMI Daily Chart

Looks identical? 

Yup, they are.

Let's try to dissect the two in the most simplest way possible. I highlighted only 3 important points for both of them.

1.  First, I plotted the multi-yr high resistances for each. Again, a breakout from these areas can lead to further continuation of the uptrend.    

        a.  For $ANI, the previous' multi-yr high resistance was registered at 8.17 on June 19, 2017.             

        b.  For $IMI, the previous' multi-yr high resistance was registered at 13.98 on June 22, 2017.

2. After plotting the multi-yr highs, both stocks consolidated for few days and entered a 'crossfire zone' (a battle between the bulls and bears). But as we can see, the consolidation just happened for a few days, and after respecting the SMA20, the prices broke out from the multi-yr highs. This is the time I made my entry.

        For $ANI, I entered after the BO at 8.17 area. Around morning of Monday July 3, 2017.

        For $IMI, I entered on the BO at 14 area. After recess of Tues, July 4, 2017.

Both breakouts are supported by volume buying (2a). Both volume exceeded the average traded volume for 20days. 

The RSI daily also broke out from 70 level (2b). This is a sign that the price breakout is bullish and made a convincing move. Of course as part of risk-management, I set a cut-loss area just below the breakout points.

3. After the breakout from #2, both stocks made a different story. 

$IMI was strong enough to continue the rally for 6 trading days and made a new multi-yr high at 16.80. 

Almost 20% move from the previous' high.

$ANI on the other hand made a pullback from July 5 to July 7 (I can still recall the emotions on this pullback). It consolidated again for few days but managed to create a new high at 9.23. Around 12% move from the previous' high.

After they made new highs, I sold all my positions on Tuesday of July 18, 2017.

I can still trend-follow $ANI and $IMI based from my original AEP and sell whenever SMA20 'snaps', just like what Miss Nina discussed in her trend following topic. 

But what made me sell both stocks? Apart from the 10% objective gain was met, there's something a lot bigger. 

Let me share you a story. 

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The Money Growers Encounter

I first encountered Money Growers start of this year, sometime Feb and March of 2017. I noticed he uses the ZF system from his posts. At that time, I was still in "trial and error" studying the ZF system on my own. I didn't know who "Money Growers" is. I just remembered he uses AOTS with same moving averages that every ZFT was using. 

So while me trying to hit the moon, I asked some few technicals to him. This was my personal account.

This was one of my first encounter with MG.
I didn't know he was part of ZFT back then,
and that Money Growers & Akio Kashiwagi are the same person! ;p
(In case you didn't know about Akio, read his blog here: https://epistleoftheseed.wordpress.com/)

I had a few questions, we had a small chat, but I really can't get any direct answer about the technicals (hehe).

One of the reasons why I kept on back-testing their system.
I must say, it really works. :D

We had a good chat. A 'memorable one' (Only me and Money Growers know why hehe).
That's why he challenged me, asking those technical questions I raised.

The reward: to unlock a study he created and used. Looks challenging!

I'm the 4th one to take this challenge... 

I need to win 5x consecutively, with at least 5% gain per trade and at least 50% port allocation.

I accepted the challenge March 8, 2017. 

This day was memorable to me.

But you know what?

I LOST THE CHALLENGE.

I got my 1st winning trade ($LMG). 

I lost on my 2nd trade ($DD), and that was April 29, 2017.

I failed to get that study from Money Growers.

I am forever banned in his page.

But, even if I lost that challenge, I still continued my journey. I told myself, hey, if I can study on my own, I can create my own studies and discover something new. So instead of seeing that event as a failure, I considered that loss as a learning for me. 

See, the stock market is an infinite game, there's no end. If you lose at some point, just don't give up. Just continue. Eventually you will pick yourself up and we can always improve. The only time the stock market will end if we choose to quit. Quitting is not the option for me. That's why I am still here. I created my troll account and my blog to share my learnings as a trader. It's just like I am talking to my old self and teaching the old me. Because I also came to a point where I don't know anything about the technicalities of trading.

And while I am sharing what I know to everyone, something just happened...

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Akio Kashiwagi (aka Money Growers) PM'ed me:

Yup, he remembered our conversation and challenge from above :)

Heto nanaman ako sa challenge niya hehe

I know he's Money Growers, and I even know his real name :p

Literally, the world just stopped.
It's like a ZS happened, plus shifted to AOTS and ATH breakout for me.

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So that's why I went on full purge for 3 days.

Who would have known, that losing challenge I took from Money Growers, will lead him to become my Mentor?

I am emptying my cup for this life-changing event.

I've been a solid ZFT follower ever since. 

I will be at my best. I will forget what I learned in the past. 
For now, I will learn from the start again.

Where have you been?
I've been so alone
I don't know how I lasted this long

You said "the fires won't consume you,

and in the rivers you won't drown"

I wish to pause this moment

'Cause as I cry I start to realize

What's missing was you