MITI success and a few other need to knows...

All right, I'm not going to spend a lot of time on my MITI trade today, although I walked away with a decent profit.

I mentioned yesterday that I was holding MITI overnight, confident that it would continue it's breakdown from yesterday... literally minutes after the opening bell this morning, MITI shit the bed. It took a half an hour before it broke resistance @ $6.51 (which was a key breakdown level).

I was bound and determined to resurrect myself from my last couple of near fatal trades...

SIDE NOTE: As a noob to stock trading, one thing I know for sure, and it applies to life in general... when you fall, and sometimes you fall hard... and it hurts alot... your account, your confidence, your ego... F*CK IT! All of it! Pick yourself up, look your goals and dreams in dead square in the eyes and keep going! The biggest enemy you have in life is yourself... don't become a prisoner in your own mind... life is to short for that!

... so this morning there was a definite calm to me... it was nice... as I usually get up anxious and eager. On Monday, I lost $190.00 on MITI (sticking to my 3% loss rule), but MITI still had more to offer, and I took advantage of that. I re-entered MITI shorting 1,000 shares @ $6.68... a bit pre-mature because there was a little spike before it tanked (again), but I'm not going for perfect entry's/exit's at this stage, I just want to be comfortable entering/exiting plays as a daytrader...

Playing only this one stock all day, I told myself that I wanted to cover my losses from yesterday and not be greedy. I sold MITI @ 6.22 for a $.40 gain per share, giving me a $600 P/L for day.

There are a few stock terms that I've been either reading about or hearing about a lot about lately and for those of you who aren't sure what they mean... I'll try to help...

The two terms are ADR(30) and Green to red/Red to Green.

I must first pay homage Laura (GOTS chatroom goddess - THANK YOU, THANK YOU, THANK YOU for your time with this...) for teaching me what ADR(30) is and what it means when doing your nightly DD... I'll keep this explanation as simple as possible.

ADR = Average Day Range
(30) = This is the "period" or "# of days" that your averaging
The "Range" = the difference between a day's "High" and a day's "Low"
To get the Average Day Range, take the "Range" and divide it by that day's close price.
Rinse and repeat for the # of days you're looking for... in my case only 2.
Then, add the totals from each day together and divide that sum by the # of day's you're ADR is, again, in my case 2.
NOTE: The higher the ADR the more volatile the stock... and we all LOVES, LOVES, LOVES volatility.

Mathematical example - ticker is MITI... and I want to know what the ADR(2) is... first you have to collect your data... unless you have a spreadsheet that can calculate this for you... it's basic math... easy stuff!

8/25 - High $7.74 - Low $6.51 - Close $6.81; so subtract $7.74-$6.51 = $1.23 this is your "Range". Divide your range ($1.23 by the close $6.81) = 18.1 (don't forget to move the decimal back two places)
8/26 - High $6.90 - Low $6.15 - Close $6.32; $6.90 - 6.15 = $.75/6.90 = 11.7

Add 18.1 + 11.7 = 29.8/2 = 14.9

So the ADR(2) for MITI is 14.9; from what I've been told anything over 8 is worthy... so all-in-all, this isn't bad for two days. You'll eventually come up with whatever works for you.

Green to red/Red to green are key to finding those breakouts/breakdowns, as per this post HERE by 13th from GOTS, which explains it very well. And a quick thanks to "tacguy22" from the GOTS chatroom for taking time to answer my question and point me to this link! Cheers duder!