Piss Poor Trades #2

The Laydown

My trading seems to have gone to shit recently. This coupled with revenge trading, my $2500 account dwindled to $1600. This is pretty bad. However, I will keep improving by discovering mistakes I have made while trading.

Here are my trades.

Ticker: RMTI

Date: 06/25/2015

This is how the daily chart looked like. It gapped up that day and popped before going down.

 

I started too early because I expected a failed follow through. I did not give it enough time and started with a bad note. Afterwards, I was just too scared of the trade and got out once it didn't work. I did not respect my stop and paid for it.

Lesson #1: I should be more patient on plays, especially with a smaller account. I need to let the chart play out and make sure it is set up before going in.

Lesson #2: I should respect my stop and let it do its thing. If I cannot respect my stop, I should not be in it in the first place because it is too risky to play.

Ticker: NVAX

Date: 06/25/2015

I played this chart okay, but I could have done better. My entries were a bit off and I could have sized in more.

Lesson #1: I need to give a stock more room to play out. Again, if the range is too much, then the stock is too risky to play. I need to remember that given my account size now. 

Lesson #2: I cannot be afraid to size in if I am right.

Ticker: EXEL

Date: 07/24/2015

I shorted because it broke the trend to the downside. Unfortunately, the bigger picture was a long. I just played a short term technical thing. I need to get it in my head that there is always a bigger picture and I should catch it before I lose anymore money. 

Lesson #1: I need to realize the bigger picture. If a setup looks like a long, then I should follow it long. I should not short it because of small technical moves. Those moves can be set up for the bigger picture.

Lesson #2: I should not add in unless I was right about the trade. I added in too much size without knowing I was right or not. This is how I can lose big money. 

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.