One and a half months later, my stupidity still continues. I wanted it too bad today and the work chase clearly has not gone out of the dictionary. A real slap in the face. The account continues to bleed and I hit my max loss of the day. In about no time I would have lose all my money. The last third has begun.
Good luck to myself.
NTEC – Float was a bit heavy, did not work so and volume dried up, so got out flat
SBLK – two trades here
- First one, got stuck in consolidation, tapped mental stop and got out a tad early. Was obviously emotionally furious when I realised it just went back to previous high
- Got emotional, tried to chase it for the HOD break. I got in early because i was too emotional and played a set up I was not fond of. Disappointed in myself here.
Sad day really. I was having a little bit of FOMO from yesterday. Didn’t trade yesterday as I was a tad bit busy and actually saw some decent set-up form with hindsight. Definitely played into my emotions today.
Trading is tough. Its a slow slow slow grind and it can really get to you at times.
Today I sincerely feel like the biggest idiot. Every other trader probably made money today but only a clown like me could lose like that.
I made all the worst mistakes a trader could make. I broke all my rules.
- I bought pre-market. NEVER AGAIN FOR A MOMENTUM STOCK
- I traded way above my max loss!
- I did not cut my losses!
- I revenge traded like a bitch! My emotions got the best of me. I was not thinking straight at all.
New Rules and lessons learnt:
1. Never buy pre-market for momentum plays
2. I caught myself being short into an upward circuit breaker halt. Imagine that feeling. I will focus on momentum trading for now. Get back to what I know and stop trying new things in a market where momentum is picking up. NO MORE SHORTING FOR A MONTH. SELF IMPOSED SSR. (I’m going to study the short set-ups thoroughly first)
3. Stick to my god damn max fucking loss. Wow I really am disappointed in myself today.
4. Trade small size!
Now for what I am terribly ashamed of showing:
Also as a reminder of my stupid-ness below is the chart of my entries and exits. This is going to be my computer wallpaper for a while to remind myself not to be a clown.
I will be back I promise.
Today I learned some hard hard lessons.
- Momentum in the markets seem to be dead for small caps and low floaters. This means all the trading strategies I had learned over the last couple of months on my paper trading account are now invalid
- The higher caps seem to have more potential but they behave a lot differently than the suckers I had gotten used to.
- I need to work on my emotions. I respect my stops well but I always trade over my max loss. This will now be at 150 henceforth. If I lose that much I will piss off for the day
- This weekend will be a study weekend and hopefully I can learn more about mid to large caps and how to trade them. Figure out some set-ups
JUNO – Absolutely dumb short. Tried to do a multi-day resistance with volume (MDRV) but shorted way too low. Got out at my max though with slippage. Need to learn a little more about this set up over the weekend.
MBRX – First red day, no news so tried to short it. Got a good fill at 1.05 but then added to it at .99ish and 0.98ish too aggressively. Stock started forming an ABCD set-up (look up Nathan Michaud on youtube) so I stopped out. Mistake here was to add too quick and too early. Will have a look tomorrow to see how it closed.
ESPR – Was chasing this stock a little. Trend indicated an upward move but got screwed out. It ran up pretty damn high yesterday. Effectively a bad chase and chart was not clean.
STUDY STUDY STUDY this weekend and stick to set-ups I know! I will be back next week stronger. I think tomorrow I will need to take a break.