Saturday, December 29, 2007

Took a Giant Hit

I have to get this off my chest because I know this will linger in the back of my mind until I do. I took a huge hit on Thursday. I lost 5 times my average loss. First two trades I got caught on the wrong side of the order flow big time and then the third time I got caught just as the market started to decline at the end of the day. The third one was revenge trading for sure. I wasn't paying attention to anything and saw a stock running and I wanted to jump on. I did, and lost big.


I think I needed this though because I've been pretty careless with my trading. But now I have this huge hit which is probably officially my worst loss I'm starting to feel a little more cautious with my selection. I need to wait before diving in right away when I see a possibility instead of seeing the probability. Just be aware of my surroundings (market conditions) before getting in.


Also, I need to know when to fold' em. For example, Thursday morning when I sat down I looked around, checked the conditions and even told myself, I probably shouldn't trade today and actually had a...I don't know if you'd call it intuition or instinct or what but I got a flash in my head saying go short and it quickly disappeared and I ignored it. Missing out on a huge decline that day. So, I really need to start trusting myself, pay attention to what I'm telling myself and follow it.


Man, this is so much easier said than done. It's like you need a thousand different scenarios running in the back of your head and pick the right scenario when you see certain conditions. Also, I need to realize I'm still going through the learning process. I can't expect to be pro after 6 months of hard trading, learning, and research. I just hope I have enough cash to get me through this phase.


Anyway, I feel better now. :)

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mdoppel said...

I have that same problem. I doing know if you use any system but try to sent up standards and just stick to them no matter what. Or just let your broker trade them. Put in the trade at the beginning of the day, including stop price and sell price, and left it ride.

I don't know who your trade with other than Zecco.

By the way thanks for the book list that you posted in one of my blog posts. I have found them to be pretty interesting.

Thanks and hope this helps,


tradeswing said...

Yeah I have a plan that I've been following but it's like I find out new little tidbits about the correlation between price and volume that I didn't know about. Things I can take into consideration and then I start swaying from my plan.

I need to update my plan basically. I'm only with Zecco now and I wish they had those "if, then" orders. Where I can buy, then a stop and a price target and if one gets hit then the other cancels, vice versa. That's what I need... lol

That way I can setup my plan and walk away and I know how much I'll lose and how much I could make.