Fourth: Beginner's Failure

Summary

I played the chart incorrectly and paid the price. I cannot risk much since I lost all my money so I try to compensate by putting a tighter stop. If I must do this to play, I shouldn't play at all. I have to go with a plan where I have the best chance of success. Otherwise, I will fail.

Ticker: MEI

Both ways would have worked fine. I was just looking out for which way it would go today.

My stop was too tight and I got stopped out before the chart worked. 

 Note: Play the right stop or don't play at all.

Ticker: BGS

This could go both ways. Just gotta look intraday to see what it wants to do.

I missed the morning flush and it reclaimed support perfectly. I was looking for a lower high and to anticipate another wash. It did not happen.

Note: If a stock reclaims with conviction, it is still front side and I should not touch until it hits backside. 

Note: I should be focusing on stocks that have more volume like KBIO. Today was a fuckup. 

 Found out what I am doing wrong? Please let me know by posting a comment below. 

Piss Poor Trades #1

What's up folks?

I'm have been trading everyday for the summer, but have been too lazy to make a post everyday. This has slowed down my progress greatly and does not help me learn as effectively as possible. I decided to change this and do a series on the worst trades I took and how I could have prevented it. This should help me review these charts and let me know how to avoid them in the future.

So here goes nothing.

Ticker: ACAD
Date: 07/15/15

The chart was overextended on the daily so I decided to give it a try. My first attempt was was @ $51.07 because I saw a higher low and thought it was done. It quickly trended up which was a sign I missed and went higher. I covered @ $51.65 which was bad. I tried again at $51.60, but it came back before it came back down.   My stop should have been @ $52, but I just decided to say fuck it because it didn't look like it was going down anytime soon.

Lesson #1: I need to set stops quickly on fast moving charts or I will get run over if it goes against me. 

Lesson #2: I should play smaller size because it was the front side of the move. Playing with smaller size would allow me to be patient on the play and set my stop to the appropriate amount. I can even add in once the chart looks weak.

Lesson #3: I need to recognize long consolidations faster so I can get out more quickly without losing.

Ticker: NCR

Date: 07/20/15

I tried to play this chart because of the quick parabolic upwards. I again played the front side and did not get out when I saw the consolidation pattern. I re-shorted, but got out. It eventually worked, but it's not how I want to play these types of stocks.

Lesson #1: I should remember to look at previous days that had similar action. The day before did the same thing and I did not heed its warning of a second leg. 

Lesson #2: I was thinking about holding it for a swing, but I realized that this was stupid because I didn't even know the news. I need to stop thinking about swinging things if the chart doesn't go my way. 

Lesson #3: Since this is still the front side, I need to use smaller size to limit my risk. Then, I could add in if it went a little higher instead of stopping out. 

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.

Fifteenth: No Pain

Summary

I realized today that I can either be a winner or a loser and I want to be a winner. In order to win, I must follow the rules I have in place and develop better plans of action. As of now, my plans seem too weak. 

In other news, it seems my emotions have been sucked dry. This is good because it seems I can feel no pain anymore.

Ticker: RXII

Wow, it hit resistance and it just tanked like JOEZ. This has happened to me so many times and it must mean that I am cursed.

 Note: I must read the news of breakout stocks to see if it a dead cat bounce or can have a continuation. This stock had no news so I should have just sold into the resistance.

Ticker: STAA

I bought this not respecting the trend. I did not even notice it. I did not allow it to retest prior highs and just got fucked.

Note: I should not play in the front side of moves until I am more experienced.

Ticker:  RT

I felt like it might crack, but it held the trend so I took it off. This time, I was not going to fight trend.

Note: I did a little better, but still averaged down before confirmation. I must stop doing that.

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.

Thirteenth: Unwarranted Detour

Summary

-$0.68 a share

 Today was a horrible day for me, but I kept my cool by not over trading and more importantly, I did not allow the trade to affect my overall day. The original mistake stemmed from me being bored and trading when I didn't have to. When this happened, all my rules seemed to have flown out the window. It goes to show that the market can rip anyone apart regardless of how much experience they have. I cannot let this trade affect me.

There is no point in being angry because that is just a waste of energy and time worrying. The trade already took place and I need to review what I did wrong and continue onto the next trade.

Ticker: REPH

I started in because I was bored and did not allow resistance to properly test. I assumed $14.00 would be top and played the front size of the move for no good reason. When $14.25 looked weak, I added because I thought that was the top. I was wrong. The real top was @ $14.60 which was obvious because it was prior resistance. I was stupid and could not take it anymore when it started making higher highs in consolidation.

Note: I made a stupid move by playing the front size and not allowing the chart to test resistances properly. I rushed the play and also played something I was unfamiliar with. This was stupid.

Ticker: DHT

I did not allow resistance to test properly and break. I failed to notice the failed follow through after the morning washout. I did not sell when there was an obvious red volume flag. I just stopped out. I need to be able to read charts better if I am to survive the market.

Note: I am just happy that I did not over trade and racked up commissions. This day could have been worse.

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.