Daily Recap: A Day of Forced Trades and Valuable Lessons

Today was a challenging day in my trading journey, marked by significant losses and important lessons. My impatience led me to force both of my trades, resulting in a total loss of $48.75, bringing my account balance down to $1,065.52. This experience has made me question the consistency of my current strategy, even when I manage to get a good entry. I plan to research alternative strategies and might try a new approach in the coming week. Let’s break down today’s trades.

Trade 1: ZAPP

I attempted to capitalize on the pump in ZAPP, but the momentum wasn’t strong enough. I bought in at $10.34, near the top of the ramp, hoping for a continuation. Unfortunately, it started to decline. I was buying into a pullback, but my strategy requires a break of a new high to enter, creating a large gap between my entry and stop loss. An ABCD pattern could have provided a better entry with a more efficient stop loss. Ultimately, I was stopped out at $10.05, resulting in a loss of $21.76.

Trade 2: KZIA

In my second trade, I tried to ride the ramp up in KZIA. Once again, impatience led me to enter at $1.52, near the top of the ramp, without waiting for a solid setup. This forced entry was a mistake, and I ended up selling at $1.385 for a loss of $27.01. I should have set a stop to limit the loss to around $20.

Key Takeaways

1. Patience is Crucial: I need to wait for better entry points and not force trades. Rushing in leads to poor decisions and losses.
2. Reevaluating Strategies: The inconsistency of my current strategy suggests it may not be the best fit for me. I will explore other strategies that might offer better risk management and consistency.
3. Continuous Learning: I plan to read more books and research new strategies to improve my patience and trading skills.

Today was a tough reminder of the importance of patience and the need for a solid strategy. I’ll continue to learn and adapt, aiming for better results in the future.