Tuesday, 8 January 2013

Day Trading Logs - Do Not Over Trade - Rule

*Right Click Chart, Open in new Tab*
So today was another day, started off nice, I looked at all the stocks that I felt comfortable trading that suited my plan, I had one in mind and it was CY, I wrote down exactly what I wanted to do with it in my plan prior to the market open and it did just that! I had this bad boy on lock, it went up to where I felt comfortable shorting and without hesitation I shorted the stock. It fell and I felt good because my plan worked out perfectly fine. I shorted only 100 shares, I was up $35 bucks (doesn't seem like a lot but you must consider its a $10 stock and catching .35 cents out of it is a respectable play.

Then when I felt comfortable that this stock was on my side and I felt like taking some profits, I was ready to cover 1/2 my position and let the remaining 50 shares ride the slow bleed all the way down to the $10 range. And what happens? Instead or purchasing 50 shares back, I purchase 500! I was like HUH? Not again! I panicked and covered my entire position, still made $35 bucks though, but now I incurred commissions on 1000 shares which cost me $5 for no reason!

Then came trade number 2, this is what really made me mad, after my first successful trade I really didn't feel like trading, I honestly didn't, I was happy,  I was doing my review and just zoning out. The Chat room that I am in called a play, I missed the play because I was so delighted with my own trade, I thennnnn entered the play late.

I BROKE my own rule: DO NOT ENTER TRADES LATE

I felt like a kid left out,  I wanted more money, greed took over. This second trade did not go good for me or the chat room, I have nothing against the chat room because experienced traders know there is no such thing as a wrong trade, as long as you follow your plan, every trade is the right trade. But when you DO not follow your plan, you lose your mind, money and also control.

What I learned today: Follow your Plan

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