Another week in the books! This past week has been a rough week of trading. I must focus on the process and the outcome will be there. So far I have taken 9 trades in April. I am down roughly $400 on the month. That is way outside of my risk threshold, as you should know I have been setting a predefined max dollar risk on every trade. The goal was $30, but I have been like a seesaw, I have been taking a larger risk, in order to get me the larger position size. That is a big NO! As I have noted in the previous sample size, I must stick to a max dollar threshold within every trade. I have not been abiding by the rules, and when I break the rules, the market is going to teach me a valuable lesson. As I will go over each trade below, I want you to recognize the minor yet costly mistakes which I make. I KNOW WHAT I AM DOING WRONG. I can’t stress this enough, most traders don’t know WHY they lose money. Instead of Taking Full Responsibility, the take the easy route and Blame the Market. That is a big NO! TAKE FULL ACCOUNTABILITY FOR YOUR ACTION! Hear me out, do you think I enjoy taking a loss on a trade? Hell no, but its all scratch in the long run. The trades that I make at the beginning of my trading career is all MARKET TUITION! I must learn what NOT to do, in order to learn what to do! Yes, I am in a losing streak, I know why! I know what must be done, most of the trades as you will see below I make the same mistakes! I only 1 Month in, the goal is to learn from my failures, in order to grow as a Trader. First I will talk about the 9 trades which I have taken so far in April. Strengths and Weaknesses. As well I will talk about some stock that I am watching for next week! Video Recap will be below!
Trades so Far in April - $ASTC $CLSK $ABMC $TAUG $DECN $PRED $APOP $GTHR $DFFN
$ASTC was yet another FOMO trade! Again this has been a major issue that I have been struggling with! As that was one of my major weaknesses from the last sample size. Do not let FOMO take the trade. $ASTC was a big percent gainer on Thursday with COVID-19 news. There was not a PR released, but $ASTC has been a sector play with the COVID-19. They have been hyping themselves up with testing kits. Today they launched a website, which led the stock to skyrocket. The only great thing from this trade is that I did not chase this into the spike. I did wait for the dip, but IT WAS MID-DAY! Trading Mid-Day often when fake out occurs. I got faked out. I dip bought this off the highs, which the goals of bouncing to the day high. What I did not take note was the fact that $ASTC does not have a great history of holding its gains. Look left to see the right. Another aspect is that I was buying into Strength. I was trigger happy. I did record this trade live. Learn from my mistakes! I was trying to predict a bounce when I need to BE REACTIVE!
$CLSK was another speculative play. I was aiming for the gap reversal as I saw the price action bottoming. This was another COVID-19 sector play as this did have a positive catalyst. There was a nice spike towards the HOD, but instead of breaking out as I anticipation, there was multiple Topping action. There was a clear Double Top which is extremely bearish. I recognized it and I simply locked in small gains. I am fine with this trade, as this was a specific pattern. I played by the odds, and the odds did not go in my favor. I didn’t lock in my full potential gains, as I failed to recognize the double top in real-time. I had a full potential profit factor of $70. Onto the next!
$ABMC I was on the right track with this one. This was a nice first green day on an OTC. I simply was dip-buying this off the highs, in anticipation of this reaching or breaking past the HOD into the close. OTC’s have not been holding their gains well beyond day 2, the pattern is somewhat evolving. As a Trader, it’s my due diligence to adapt to change. This did have a nice perk into the close, but once again I did not lock in my gains when this topped out. There was yet another double top where I should have locked in my gains. I had a full potential profit of $131.25. I failed to lock in gains when the Market made money available to me. Onto the next!
$TAUG was another OTC first green day that I was dip-buying off the highs. This trade was mid-day and mid-range. There was not that much liquidity there and I should have recognized that. Onto the next!
$DECN was likely the most emotional trade for me yet. Taking into consideration what $DECN did the next day after I sold. $DECN was the top $OTC percent gainer on the day with great COVID-19 news. I did not want to chase this stock up, I simply waited for the dip to get long. My intentions were this to be an Overnight Swing trade because my goal was to sell into a gap or a potential Morning Spike. That is what we exactly got, but sadly I did not take part in the trade simply because I got shaken out. Rule of thumb I need to use a wider stop, as I was on the right fucking track! As the next day, $DECN spiked to the high of $.31 cents! No big deal the pattern will come back! Onto the next!
$PRED was yet another first green day on an OTC. This was another COVID-19 sector play as $PRED produced testing kits. Two trades were placed on this one. The first one I was chasing into the spike, which is a big no. I was buying strength when I need to buy a weakness. The first trade was short-lived as I got shaken out. I did not let that prevent me from taking the next one. The second trade on $PRED, I was buying the breakout. This was well-timed and I got well rewarded. I did hold the second trade overnight in anticipation of the gap up. As I have noted OTC has been holding their spikes beyond day one. There was no gap so, I simply sold at the open and lock in small gains. The first trade was a loss of $58 and the second was a profit of $98. Onto the next!
$APOP this was more of a speculative idea. I was aiming for the HOD Break. I recognized that this was coiling toward the HOD. I was on the right track but got shaken out once again. I need to use a wider stop and start with a small size and when my thesis is a proven scale in full size. Onto the next.
$GTHR was another OTC first green day with COVID-19 news. I got long into the slight dip and held overnight in anticipation of a gap up. There was no gap, so I cut my losses quickly! Onto the next!
$DFNN was not a great trade at all. I made every mistake in books! Firstly I was buying midday when the most volatility is faded. Secondly, I was buying Mid-Range. Thirdly I adding to a losing position! Adding to a loser is a huge mistake as that can open the door for potential disaster! I take full responsibility for this trade, as the market humbled me. Onto the next!
Out of 9 trades, only 2 were within my risk limit of $30. Again I am taking a larger risk to give the larger size which will give me larger returns! I am trying to scale up when I have NOT proven to myself that I can trade with discipline with a risk of $30! I need to stick to the risk limit of $30 on every fucking trade, and if my thesis is proven right then Scale in! I am going full size, when I need to scale into the trade when my thesis is proven right. Two Trades over $100 are unacceptable. I am not trading with discipline. I am ling a seesaw. I am all over the place. As well I am trading with no specific system. I am trying different long set-ups when I need to solely focus on a couple. When I become consistent with one set-up then branch out to other long strategies. For instance, I know for a fact that I am more comfortable trading OTC rather than listed stocks. In my opinion, OTC is based off technical and level 2 which I find easier to react too. In addition, I must avoid buying mid-range as I need to be reactive! Lots of room for improvement. The GOAL IS TO TRADE WELL NOT OFTEN! LET THE TRADES COME TO ME. I DO NOT NEED TO TRADE EVERY DAY!
I do hope everyone has a great Easter Weekend! No matter what you are trying to achieve you must keep going forward. I am going to post a video from a year ago! It’s amazing how fast time does fly. I will see you soon! As I type this am in week 90 of my Trading Process. A year from today where will I be? The best way to predict the future is to invent in! I know it will be worth it!
Week 90 = $-843
Week 142 =
Money is the bi-product of my craft. I never got into Trading for the Money, I simply obsessed with the Game! Three goals. Long Term Survival, Steady growth of Capital, and a System with Positive expectancy.
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