Daily Recap: Breaking the Losing Streak and Lessons Learned

Today marked the end of my losing streak. I focused on finding the right trades and setups, ensuring I was riding the momentum effectively. Although neither of my trades were particularly stellar, I managed to end the day with a small profit of $8.40, bringing my account balance to $1,168.83. Here’s a detailed look at today’s trades.

Trade on CMAX

My first trade was on CMAX. I aimed to capitalize on the recent pullback after a strong upward move. I entered at $7.84, confirming the upward trend, and set my stop at $7.49. The price went sideways for about ten minutes before moving slightly upward. I adjusted my stop loss to a 1:1 ratio and got stopped out at $8.11 for a gain of $16.19. This was slightly below my intended stop due to a fill issue. In hindsight, I was fortunate with this trade, as the initial momentum had dwindled.

Trade on WINT

The second trade was on WINT, the leading gapper of the morning, which had surged nearly 200% in the premarket. I watched it closely and identified a small pullback opportunity as it broke the previous high of $8.19. I entered at $8.22, hoping the momentum would continue. However, an error occurred where two buy orders were placed for the same amount, possibly due to a double-click or system glitch. I didn’t realize this until my stop loss was hit at $7.99, selling my first 60 shares. Noticing I still had an open position, I quickly exited at $8.32, resulting in a total loss of $7.82 across both transactions.

Reflection

While it felt good to break my losing streak, the day’s trades were far from satisfying. I realized that momentum scalping is exceptionally challenging and better suited for more experienced traders. Recognizing this, I plan to transition to a new trading style. I’ll spend this weekend researching and preparing for this shift to improve my trading strategy and performance.

Overall, today’s experience underscored the importance of precise execution and the need for a trading style that aligns with my skill level and trading preferences. Looking forward to exploring new strategies and refining my approach.