Daily Recap: Navigating New Chart Timeframes and Learning Patience

Today was a challenging day as I adjusted to trading with 5-minute and 15-minute charts. The transition was tough, and my lack of patience led to several mistakes. I ended the day with a loss of $76.70, bringing my account total down to $1,176.09. Here’s a closer look at the trades and what I learned from them.

First Trade: LCFY

I jumped into LCFY too quickly without letting the pullback candle settle, which was a critical mistake. I entered at $8.07, thinking the price was still climbing on the 5-minute chart. Unfortunately, the price dropped, closing below the VWAP, and I got stopped out at $7.39. This trade cost me $44.20, around 4% of my account, well above my intended 2% risk. The key lesson here is to avoid premature entries and ensure proper position sizing.

Second Trade: LGVN

My entry into LGVN was ill-advised from the start. The MACD indicated a downtrend, and the price was below the VWAP. I entered at $4.21 and got stopped out at $4.05, resulting in a $20.00 loss. This trade reinforced the importance of aligning entries with positive indicators and trends.

Third Trade: AMIX

Trading a third time today was a mistake. My impatience led to an entry at $1.37 without letting the candle settle, resulting in a stop-out at $1.27 and a loss of $12.50. If I had waited, a better entry point would have presented itself, potentially leading to a small gain. Limiting myself to two trades per day will help manage risk better.

Reflection and Lessons Learned

Today’s experience highlighted the need for patience when using 5-minute candles. I must let them settle before entering a trade. Additionally, ensuring my stop loss aligns with my 2% risk rule and adjusting position sizes accordingly is crucial. Only taking trades in an uptrend is essential to avoid unnecessary losses. Finally, sticking to a maximum of two trades per day will help minimize risk and improve decision-making.

The transition to new chart timeframes was tough, but today’s challenges provided valuable lessons. Patience, proper risk management, and disciplined trading will be my focus moving forward.