Took a hiatus from trading:
- Japan trip first two weeks of September
- Busy few weeks in the office shortly after
Took a hiatus from trading:
I focused on one instrument & one setup in August 2017: the Dow E-mini (YM) and Opening Gap Fade.
Areas for Improvement:
Will add to this post, just got back from a week long trip to Japan!
Books Read YTD
Net Worth Update
$(1,426) realized loss on DARE (before reverse stock split, CERU)
Account size halved from ~$3,000 to ~$1,500.
High Level: Dragged out, hope filled disappointment. The silver lining is that this is an experience I can learn from and the loss is bearable, I’m only trading with what I can lose – with what I can psychologically handle.
Strategy: Initially, buy the breakout on good news and exit at target. What actually happened: Hold, hope, hold the bags & suffer till you can’t take it anymore. From what I’ve read … classic new trader behavior.
Exit description: I sold my 200 shares of DARE earlier this morning because I finally realized how ridiculous my reasons were for holding. From the very beginning I was stubborn and wanted to be right instead of seeing what was in front of me, a clear pump and dump that I should have left at first sign of declining volume and flattening price action. I was greedy. I didn’t want to realize a loss at $200, but my total loss could be $200 and not $1,500. On the flip side, I am thankful that this was a $1,500 loss, not $15,000 or $150,000. This is tuition, this is education, I need these losses to learn what not to do.
A few more takeaways from this trade:
Rule #1: Never Lose Money
Rule #2: Never forget Rule #1
– Warren Buffet
($680) in the hole, unrealized on CERU
Losers average losers
– Paul Tudor Jones
+$11.08 realized on VSTM
($2.00) unrealized on ATHX
Watching CERU & MSDI, both gainers
$CERU – focusing on buying the morning dip. Other traders taking profits while momentum from good news will give CERU room to run.
$MSDI – same exact play, same risk / reward from entry, same size if possible, if not scaling down to 500 shares
Horrible trade. Currently down ($450)
I ignored my 10 point mental stop because I listened to hope & emotion over logic and my plan.
Mentally, I couldn’t cut the trade off because I “felt like” it could make it back to break even. I felt horrible for losing almost ($500) in less than 15 minutes.
I feel like shit, I lost money, I didn’t follow my plan.
I will not allow yesterday’s success to lull me into today’s complacency, for this is the great foundation of failure.
– Og Mandingo
+$58 on MSDI
Good news / Reverse Merger play (riding morning momentum, in and out)
MSDI caught my attention, positive news on reverse merger agreement. Strong run in the morning, I wanted to get filled at 1.75, but my buy limit orders kept falling behind price action. I eventually filled at 2.17 for 1000 shares. I was looking for a retrace / dip to buy in, I missed the chance at about 2.07. I got lucky this time, I almost bought at the top.
Shortly after I was filled, I noticed volume was dropping off (losing steam) & I sold @ an average of 2.23 in 3 lots for a gain of $58.
As a side note: was watching MDR on good news of a new credit agreement, morning price action did not match plan to buy dip and ride the morning rise. the news didn’t have the effect I was looking for.
Finishing reading Reminiscences of a Stock Operator, re-reading Mastering the Trade