8th: Not Respecting Stops

Summary

I did not respect my risk and the trade took me out of the game today. This is the reason why stops are so important and why I must just get out when my risk area is hit. 

Lessons 

1. I must respect my risk levels and know when I am wrong.

2. I must take what I can get and not be greedy.

3. I must play the game towards my strengths.

Ticker: EW

The daily.

I didn't get out when I was ahead and I just kept trying to get out at the bid when this thing was jumping up.

Note: I should have realized that it was going up at $103.60s. I got greedy and paid for it.

Note: There was a big spread and no sellers. I thought I would get out when it retraces, but it just went straight up. I had no chance.

Note: Next time I have trouble getting out of a situation, I am going to just take the loss and take the ask. 

I tried again and got killed.

Note: I should stick to my strengths and not short weakness.

Note: I should review when to get out of positions. Especially if they are as clear as this one. 

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27th: Breaking Rules

 Summary

Whenever I broke my rules and lost big from a trade, I would assume I couldn't trade the chart anymore because of its high price or volatility. After losing big today, I realized that there were still plenty of opportunities left and I just had to wait for the correct setup that didn't break my rules. The range problem usually disappears once the volume dies out and it is the low risk high reward setups that usually take care of the high price. Trading with 100 shares seems much more doable with the right setups.

What rules that I break?
1. I have an unofficial rule that prohibits me from trading when I am not feeling well or tired. This is something I thought of that I probably will work on today formally because fatigue definitely affects trading in a negative way. I usually trade through fatigue because I like to trade, but I think it definitely played a part of my downfall. If I had a proper rule in place, I would have been better off.

2. I did not manage my risk correctly and was simply not thinking in the morning. The damn chart was over $90s and I didn't even bother to calculate my risk. I went straight in like a fish and got slaughtered. I just didn't bother with risk management in the morning because I was lazy. This laziness cost me $2.00 a share.

How do I plan to fix it?
This is a huge hole in my trading that must be fixed. I was totally unprepared in the morning, so I will make a list of rules I will read in the morning everyday so I don't forget.

Ticker: GWPH

This was the daily chart.

Note: The news was meh at best. I knew the move was overdone because there was really nothing else for traders to do today.

My poor plays.

Note: I should have stopped trading it after my initial fuck up. However, the urge to get back from this chart was strong. This was my biggest mistake, I should have left it alone until the chart was in my favor. 

Note: I realize my mistake and wait for the best setups. At this time, the volatility was high so I should have just waited for it to die down a little more for a good setup.

Missed opportunity.

Note: Instead of taking this off my watch. I should have kept it on and waited for a good setup like this. Since I took it off because of my stupid beliefs, I missed this golden opportunity to actually make good money. 

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