Daily Recap: Learning from Late Entries and Tight Stops

Today added another loss to my streak, highlighting the need for better timing and patience. My entries were too late, and my stops too tight, missing the optimal moments to capitalize on potential gains. I finished the day with a loss of $27.55, bringing my account balance down to $814.99. Let’s review the trades.

Trades: DRMA

Both of my trades today were on DRMA. For the first trade, I entered at $3.36 with a 10-cent stop loss set at $3.26. Unfortunately, I bought in too late after the pullback, which left little room for the trade to breathe. Ideally, I should have entered as soon as I saw a ramp after the large red candle. Instead, I got stopped out quickly at $3.26, resulting in a loss of $14.58.

The second trade mirrored the mistakes of the first. I entered a bit sooner this time at $3.29 after the pullback but still faced a false breakout. My stop loss was set at $3.19, but I got stopped out at $3.16 due to a 3-cent slippage, leading to a loss of $13.03. This trade could have benefited from more patience, as the RSI was overbought, suggesting a further decline was likely. Waiting for the pullback to hit the 20 EMA would have provided a more solid entry point.

Reflection and Lessons Learned

Today underscored the importance of timing and support levels. Moving forward, I need to ensure my pullbacks hit more solid resistance levels, even if it means passing on some trades. This could be on the 1-minute or 5-minute chart. There was potential for profit today, but my late entries and tight stops prevented success.

I will focus on identifying stronger support levels on pullbacks to improve my entries and allow my trades to breathe. Tomorrow is a new opportunity to refine my strategy and turn things around.