Daily Recap: Learning from Mistakes and Celebrating Small Wins

Today marked a significant shift in my trading strategy. I decided to increase my trades from one to two per day, meaning each position would be smaller, but I’d gain more practice and focus on high-quality trades. Patience was my mantra, waiting at least five minutes after the market opened before making a move to let prices settle. Despite a few mistakes, I ended the day with a modest gain of $10.45, bringing my account balance to $1,078.85.

Let’s dive into the details of my trades:

Trade 1: NEGG

I noticed NEGG gapping up post-market open. With decent volume and a new catalyst, it caught my attention. At 7:37, a doji candle hinted at a potential reversal, so I prepared for a pullback. I set a resistance line at $1.27, the current high, to watch for a breakthrough. However, I mistakenly set a normal limit order at $1.28 instead of a stop buy order, causing me to buy in at $1.24.

This error could have been costly, but luck was on my side. The price pushed past the $1.27 resistance to $1.31 before retesting the support at $1.27. Unfortunately, it didn’t hold, and my stop loss at $1.26 triggered. I ended with an $8.99 gain, which, while modest, was a win. Reflecting on this, had I placed my order correctly, the gain would have been smaller, so I consider it a fortunate mistake.

Trade 2: VRPX

My second trade was VRPX, another stock showing strong momentum. Identifying a resistance at $0.90, I set a buy order just above this line, getting filled at $0.912. With a stop loss at $0.83, I had room to let the trade play out. However, in a hasty mistake, I accidentally sold at $0.9149 before the price had a chance to bounce, missing a significant run-up to $1.29.

This premature sale resulted in a small profit of $1.44, but it was a missed opportunity for a much larger gain, potentially over $60, aligning with my 3:1 profit-loss ratio. Despite the mistake, I avoided any loss, which was a small consolation.

Key Takeaways

1. Patience Pays Off: Waiting for the market to settle before trading allowed me to make more informed decisions.
2. Order Accuracy: Ensuring I place the correct order types is crucial to executing my strategy effectively.
3. Learning from Mistakes: Both trades today highlighted the importance of precision and timing. While my gains were small, the lessons learned are invaluable.

Overall, it was a productive day filled with important lessons. Winning both trades, even with minimal profits, reinforced that progress is about consistent learning and improvement. Onward and upward!