Wednesday, June 17, 2015

Sleeper Plays 101

Sleeper Plays. 

Or in a more popular term,
"Bodega Plays"

Before we start, please click that lovely link below
and observe the stock allocation of the Mage Class

During my adventures, I have met some traders who are 
in this category big time. I was wondering how some people have
 the strength to 'love' just a few stocks for months without rest. 

You know, those who post relentlessly on threads of their 
favorite stucks, sometimes just talking to themselves 
or worse, creating multiple accounts just so these accounts 
could talk to each other. 

All just so others would take notice - maybe to hype, to 
have the thread on the top pages, or some reason who 
knows what. It's pretty damn funny sometimes.

I'm sure you guys and gals have met a bunch.
Just a tip in dealing with these types: 

Even if we're in the internet,

Never make eye contact.


But the best part about these guys, is when the stock begins a
 monster rally. And then they start acting like a know it all guru
 and "telling you so." And those who oppose this new guru gets to
be ganged up by the crazy followers - Such magnificent 
display of ignorance. But who cares? 

I'm actually guilty on some of these during my ignoramus days.

Moving on....

When dealing with sleepers, you should first ask 
yourself these fundamental technical questions:

"Has the downtrend come to a stop 
and is now on sideways?"

"Are there signs of bullishness or 
higher low (HL) patterns?"

If you answered yes. The next questions you should 
consider if you plan on buying the sleeper are:

"Am I willing to wait for at least 3 months?"

"Will I not be tempted if I see other stocks 
flying and my sleeper continues to sleep?"

If you answer Yes to these, then you're 
another step to making that trade.

Because most traders fail to prepare their minds. 
And so these things happen:

Having the right mindset for the right kind of play and to 
the right kind of trader is key to a successful trade.

Which means, if you're a trader who loves 
quick plays, don't go 'investing'

Or if you're buying to invest, don't get excited 
every friggin' time your stock goes up.

That's not being multi-dimensional.
That's simply being moronic.

Search the crevices of your soul and see if 
you're a trader or an investor.

Now for the last step.

Buying a sleeper means buying at a low range. And buying at 
this particular range isn't very easy. For one, it's probably in 
an illiquid state. Not a lot of transactions happening.

It can desecrate supports or even give wild upswings 
if some trader suddenly loses his mind. 

Couldn't get my earlier records. And it doesn't look the 
same now because of those stock divs.

So you would have to adjust not just your expected timeframe, 
but your exposure and cut points as well - because trust me, 
you don't want to be in a "coma" when things go bad.

But If everything goes well and momentum picks up, volume 
and liquidity will gradually improve. And all those days and 
stress of hoarding for those shares will finally pay off. 
And from here, you get to sweetly decide if you're 
going to transition your play to TF or Momentum.

"But Zee, how will I know if it's game time?"

Simple. Once it breaks a major resistance.
Most prolly the 3 or 6 months resitance.

Keep this simple pyramid in mind.

It doesn't always look like that. But oh well. 
You get to say some things when you're ZF.

And as to the upside once momentum kicks in?

 Here's an idea:

Here's another one courtesy of a legendary trading buddy:

(Snapshot as of 7.1.2015)

And just for this case study:

(Thanks in advance sa mga hypers and gurung ulols) 

Just make sure to put the necessary trail stops. 
You don't want your gains to be eaten up.

Happy sleep-hunting!

Here's a cat in a painting for no reason.

Update 6.26.2015 
(market closing)

So uhh. Yeah. Sleeper Plays.
Problem now is.. Where to sell?
I wish all my problems are like this.

Contrary to popular belief, you don't need to trade every winning
 stock to be highly profitable in the markets. You just need to trade
 the few stocks that matter.

Study more so you'll trade less.


Happy weekend everyone.


  1. Thanks for these inspirational blogs mr Zee. I love these "Search the crevices of your soul and see if
    you're a trader or an investor." and I must admit I am guilty. At first I insisted that I'm a long term investor and mentally conditioned my self. But deep inside me, my soul says I'm a natural born trader. So now, I do swing/day trading and have a peace of mind at last :)

  2. happened to marc today lol...

  3. sir zee i noticed that your 2011 port has an equity of 200k while your 2012 port has an equity of 3M.. did you add on your equity? or did earn that for 1 year?

    1. I did several capital infusions, and of course, roll some of the trading gains.

  4. kelan pa kya mag start ang ZF hedge fund?

  5. Boss Z why dont you put up a school similar to Caylum Trading Institute? That way, mas marami kang matutulungan. btw, im a fan.