Daily Recap: Lessons from Switching Timeframes

Today was a challenging day as I experimented with trading on the 5-minute chart instead of my usual 15-minute chart. The results were less than ideal, reinforcing the importance of sticking to what works best for my strategy. Despite the losses, I gained valuable insights into refining my approach, particularly in managing profits and stop losses. I ended the day with a loss of $36.95, bringing my account balance down to $905.30. Let’s break down the trades.

Trade 1: ALZN

ALZN was the top premarket gapper today with strong news driving early momentum. After an initial surge post-open, the stock pulled back, and I tried to catch a second wave of buying. I entered at $11.59, using a 50-cent stop loss. The price moved close to a 2:1 RR, giving me a chance to lock in some profits, but I hesitated, and the stock reversed, stopping me out at $11.07 for a loss of $18.22. This trade was based on a 5-minute chart entry, and while the setup wasn’t terrible, relying on the 15-minute chart would have likely kept me out of the trade. The broader view on the 15-minute chart showed a clearer sell-off pattern that I missed by zooming in too closely.

Trade 2: SOND

SOND was another premarket gapper with news, and after a strong move to a new high, I tried to ride the momentum. I entered at $5.70 with a 25-cent stop loss, but the move turned out to be a quick pump, and I was immediately stopped out at $5.45, resulting in an $18.77 loss. This trade was also based on a 5-minute chart entry, but there was no valid setup on the 15-minute chart. Had I stuck to my usual timeframe, I would have avoided this loss and potentially found better opportunities later in the day when the stock showed a more sustainable trend.

Overall Reflection

Today’s experience highlighted the importance of sticking to my strategy, especially regarding timeframes. The 15-minute chart has consistently provided me with better entries and clearer trends, whereas the 5-minute chart led to unnecessary losses. Moving forward, I’ll focus on using the 15-minute chart to ensure I’m trading within solid, upward trends. Additionally, I need to work on moving my stop loss up sooner to protect profits, even if it means sacrificing potential gains. Preventing losses is crucial, and adjusting my stop loss to break even can be a simple yet effective way to achieve this.