Daily Recap: A Red Day with Good Setups and Lessons Learned

Today was a red day in the market, but it wasn’t due to poor decisions or rushed trades. Both of my entries were well-timed and based on sound analysis; they simply didn’t play out in my favor. Despite the losses, I’m proud of myself for staying patient and disciplined, waiting for quality setups. I ended the day with a loss of $33.50, bringing my account balance down to $866.54. Let’s break down the trades.

Trade 1: INDO

My first trade of the day was on INDO, which had shown consistent momentum since the market opened. I identified an opportunity to enter on a pullback that was finding support on the 9 EMA. I entered the trade at $4.11 with a 15-cent stop loss offset. The trade initially moved in my favor, reaching about a 1.5:1 risk-to-reward (RR) ratio, but it didn’t hit my 2:1 RR target. I held the position, hoping for further upside, but eventually got stopped out at $3.955 for a loss of $15.53. In hindsight, I might have considered a tighter stop, but that would have reduced my risk and potential reward. Ultimately, I believe I managed this trade well; it just didn’t go my way, and that’s part of trading.

Trade 2: GNLN

My second trade was on GNLN, a significant premarket gapper with news driving the action. The stock had been trading sideways most of the day, so in retrospect, I might have skipped this trade altogether. However, I noticed a potential ramp-up opportunity above the VWAP and entered on the pullback, with support showing on the VWAP level. I entered at $8.90, just at the open of the previous red candle, with a 40-cent stop loss due to the stock’s volatility. Unfortunately, the momentum stalled, and I was stopped out at $8.50 for a loss of $18.02. Despite the loss, I’m satisfied with the entry decision. I saw higher volume on the green candles, less on the red, and then increased volume again as I entered. The setup was solid, but the outcome wasn’t in my favor this time.

Conclusion

Today was a losing day, but I’m pleased with how I handled my trades. Sometimes, even with the right setups and careful planning, the market just doesn’t cooperate. I stuck to my rules, found good entries, and managed my risk appropriately. Losses are an inevitable part of trading, and today’s experience is a reminder that doing the right things doesn’t always guarantee a win. I’ll continue to focus on identifying quality setups and refining my strategy as I move forward.