Investing Pinoys: How I made 59.58% gain in Trading Double Dragon (DD)?

DD

I'm a big fan of the anime One Piece and for me the most mysterious characters in the anime are the D's. "The Will Of The Ds", as what they say in the anime. But I'm not gonna be talking about Monkey D. Luffy or one piece, instead I'll be talking about "The Will Of The DD". In case you haven't watched the anime I suggest you go and watch it, then you'll know why I liked it.

DD is the stock symbol of Double Dragon. I monitored DD while it was consolidating at 35.00 to 39.00. I waited patiently until a buy signal will appear. On April 28, it made an attempt to break its previous high with above average volume but it didn't close strong with significant upper wick that is why I avoided it. The following day DD's closing price was the same with its opening price, this is called a "doji". It got my attention once again since it means that people are buying up the price. For almost a week after DD constantly making a doji, specifically a dragonfly doji (doji without an upperwick). This means that traders keep on buying UP the price and there is a price control from the bulls signifying that there is a great demand on DD. On May 11, 2016, it prompted me for a buy signal but unfortunately I was not able to buy it in time (Nasarhan ng market. Silly Me). What prompted me to buy it? Price action and volume. On that day, DD printed an above average volume and closed strongly with no upper wick. Notice also how it closed above those moving averages. See Figure 1.

I bought DD at 40.50 (1st Tranche). See Figure 1. Close enough to the opening price and the breakout price of 40. I waited patiently as the price of DD keeps on soaring. It made another base at 47-49 area, breaking that 49-50 area would have been my ideal 2nd entry but my day job got me busy and was not able to buy it at the ideal buy price. Instead, I bought it near the closing price at 52.05 (2nd Tranche). My Rule is, if you can't buy it at the breakout price then buy it at the closing price of the breakout day. Buying a stock at the closing price is the safest for me since you already have a good idea that the stock will not reverse on that day and can evaluate the partial volume if it is good enough for you to buy the stock.

Figure 1

Once a stock moves to what I expect it to happen and I significantly have a good base then I become a trend follower. I'll be waiting for a strong sell signal, strong bearish candlestick or a breakdown from my moving averages. Last June 06,2016, investing groups in FB was at a euphoria. All posts were related to DD saying: "mag 80 na to kunti pa 100 na lang", "nagwawala ang dragon" and all other stuffs. I got alarmed by it because once the investing groups are already so excited on a stock usually it ends catastrophically. I became vigilant with my DD and waited if it will close weak.

At near closing DD traded between 69-70+, I already have a good picture that the bears are already in control from the form of the candle. I sold all my DD shares at 70.00. See Figure 1.

The following are the signals that prompted me to sell my DD shares:

1. It traded below its 50% daily price range, despite the very large volume.

2. Moving averages are already too far away from the current price.

3. It formed a possible shooting star candlestick (bearish candle stick)

DD plummeted to as low as 46.00 and it is a jaw dropping - 39% down from where I made a sell transaction which happened for only three days. If I didn't sold my shares I would have given away all my gains in just three days.