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.

R&R: 1/29/15

TICKER: EXEL

What a day it was. Today was my first day shorting after joining SureTrader and it was an awesome experience. My first short was on EXEL and it was such a mess. I lost my money overall and made some horrible mistakes. However, it was just a warm up for my second trade. Hopefully I get better over time. 

Looking at this chart, there were two options. It would either break $2.08 and just shoot up strong or it would go over and under that amount and just turn red just like how it did in its pastimes. So, I was looking to short over and under $2.08.

It went straight down so I became patient. I really screwed it up though by panicking too early and fell into a bear trap. I shorted @ $2.02 after its first lower high thinking that it was definitely going down, but encountered a slow grinding action upwards. After the second lower high, I was sure and shorted some more @ $2.00. However, I thought I saw higher highs and it going from red to green and covered @ $2.04 for a small loss. I was stupid and did not let it test the previous highs and just covered. After an awesome conversation with SureTrader, I shorted more @ $1.95 and hoped for a flush which did happen. However, I was looking into a one day swing and just disregarded it. I did not notice its previous history and almost got squeezed.

Note: Remember to take a look at the history of the chart to see if it has any special characteristics like closing strong. It could make you want to short with a shorter time frame in mind. VinnyB reminded me what over/under meant so that is useful. If a stock does not keep up with the support after breakout, then it is most likely fake. 

Note: Remember to take profits when you are up. You can always re-short later. I need to either work on swinging or daytrading.

TICKER: GENE

It was my first time shorting something this big. I made a lot of mistakes and only hope to get better as time goes on.

I really wanted to buy in earlier, but I missed a lot of bearish signals and cues. It was moving so fast that I didn't even know what to think. So I purchased in @ $4.25 after a triple top and I noticed lower highs on consolidation. I covered as soon as it hit the bottom of the channel. I re-shorted $3.90 because I thought it was going over and under $3.80 and it would just break, but covered @ $3.85. After the lower high, I was trying to sell out of my EXEL position and got distracted. I immediately waited for it to re-test the resistance and shorted for an average of $3.75.

Note: It formed a a descending wedge and although it looked weak, this thing could have squeezed tomorrow. Next time I plan holding something overnight, I need to put in a smaller size. My plan for tomorrow is to sell out immediately in the morning if it is strong and re-short when it is at its highs. 

Note: I need to take smaller positions for holding overnight and I need to work on the differences between swinging and daytrading. I need to figure out the fine line and how I will play each stock.

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.