The Eleventh: Stupid Mistake

 Summary

I did horribly today because I made a horrible mistake. I set my stop to a buy instead of a sell and it just bought me in at the worst time possible. After the mistake, my trading was complete off and I just ignored rules. At the end, this costed me over $100 for commission plus losses.

Ticker: MRGE

Originally, I saw this chart and it broke below the channel. Since the channel acted as a sort of resistance yesterday, I took a partial position @ $4.43. I thought it was would act as a resistance, but looking back now, I should have waited for it to test further.

Note: The good thing about this trade was that I  remembered to add a stop soon after my short. I was stopped out and that was the end of that. A stock that doesn't work out, but done with good execution is a-OK in my book. 

Note: Let the resistance be tested more before buying in. Be more patient and you will not even have to waste money on commissions. 

Ticker: ARRY 

This was complete fuck up that screwed my whole day. I purchased @ $8.00 for a bounce and I hoped for it to break $8.10 for a short squeeze. I added in @ $8.06 near the top and the whole thing just fell apart which didn't even leave me time to setup a stop. I thought this would just channel so I just left a stop @ $7.95. I focused on OPK for a bit and to my horror, I found out that I bought more instead of selling. I sold out, but wanted it to bounce and kept messing up.

 Note: If I haven't made the mistake of buying instead of selling, I would have been okay. I need to be careful and double check when I set my stops. 

Note: First, I set the stop too late and I did not realize that the ascending triangle seemed too steep. I did not look at volume and see that the shorts were absorbing all the longs at $8.06. The break was sudden and I should have made my stop tighter especially since this stock has a tendency to drop quickly. It also seemed to reach its resistance. I need to set my stop so I break even instead of losing out. This is a bad habit that I need to break.

Note: I need to remember that if I sell, I could always buy back. I need to sell quickly to prevent losses. I need to remember that bounces do not always work and that it is better to be in cash than to have it not bounce like in this situation. 

Note: I need to realize that I need to switch sides if one of my positions do not work. If I have a long bias and it does not work, I need to switch to a short bias quickly. This goes the same the other way.

Ticker: OPK

VinnyB introduced me to this stock and alerted me when it was forming the descending triangle. I took a position quickly and gout out before the short bounce to fix my ARRY problem. Do you notice the head and shoulders pattern? I did not see anything because I was way to distracted.

Note: I need to focus on my winners instead of my losers. Because of ARRY, I forgot about this stock and that was a mistake.

Sidenote: I added more into JOEZ.

Please let me know if you have any comments or opinions. I would like to know if you have spotted any mistakes in my logic.