Monday, September 24, 2007

This is how you don't trade

I can't believe what I just did. For one, I had a plan for a stock, had it all laid out and I end up buying it at my exit price and selling it for a loss. Green box represents my entry and red box is exit. I feel like an idiot, not because I lost money but because I did the exact opposite of my plan.


I hesitated to pull the trigger at my original target entry point and I think it's because I'm putting a lot of pressure on myself to perform. I can only make 2 trades a week to comply with SEC regulations and when I trade I always catch myself trying to trade the best setup so I can make my trading worth while and profitable. I should be focusing on making good trades wether they be profitable or at losses. This is an extremely good example of a horribly bad trade.


So, now that I've used my trade, I have one left for this week, 2 more if I push my luck. Before I was doing about 6 trades a week with nice success because I didn't care if I was tagged a day trader or not. But now, I seriously need to control myself and in doing that I'm killing my performance and my gains. I'm way too limited by my capital.



LOCM - Candle 3h9m_3m 2007-09-24 075020


In case anyone notices, I did lower my entry and stop loss targets to account for the drop in support, which, in hindsight was a good idea but I didn't take the opportunity.

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