Daily Recap: Lessons from a Tough Trading Day

Today didn’t go as planned. It was a slow trading day with limited opportunities, and many stocks didn’t perform as expected, even when supported by solid news. I ended up losing both of my trades, closing the day with a loss of $44.05, which brought my account balance down to $1,058.32. Let’s break down the trades and the lessons learned.

First Trade: APDN

My first trade of the day was on APDN, which had gapped up in the premarket due to Mpox-related news. The stock started the day strong, rallying quickly before pulling back. I was looking for an entry point on the potential continuation of this momentum. However, I made a critical mistake by entering the trade prematurely. The candle before my entry didn’t close higher than the previous one—they closed at the same price—making it an invalid entry. Despite this, I went ahead and entered at $3.20 with a 15-cent stop loss at $3.05. The trade quickly turned against me, and I was stopped out at $3.05 for a loss of $22.08. Reflecting on this trade, it was a poor decision to enter without proper confirmation. Additionally, the price turned downward shortly after my entry, highlighting the importance of being cautious when momentum starts to fade.

Second Trade: APDN

The second trade I took was also on APDN, and while it was a better setup, the outcome was the same. After a significant sell-off, I saw an opportunity for a potential rebound, considering the stock’s earlier news. Once the price showed signs of turning upward, I entered at $2.69 with a 10-cent stop loss at $2.59. The trade met my criteria, and the MACD on the 5-minute chart was positive, which gave me confidence in the potential for an upward move. Unfortunately, the trade didn’t go in my favor, and I was stopped out at $2.59 for a loss of $22.06. Despite the loss, I’m okay with this trade because it met my rules, and sometimes the market just doesn’t cooperate.

Reflection

Overall, today was a tough day, but it reinforced important lessons. First, I need to be disciplined and ensure that my entries fully meet my rules before taking a trade. Secondly, I need to be more aware of when the price might be turning and avoid entering trades when momentum is slowing down. While today’s losses were disappointing, I’ve had a strong week overall and will continue refining my strategy as I move forward.