Daily Recap: Navigating the Ups and Downs of Day Trading

Today was an intriguing day trading on the simulator. It began on a rocky note with significant losses due to mistakes that I learned from, but ultimately, I managed to come out on top with a net gain of $56.05, as shown in the above image.

Big Loss: EOSE

One of my most substantial losses today was with EOSE, which had news of a large investment this morning. Unfortunately, I entered this stock too late and at unfavorable times. My first buy was at 7:46 AM (MST) at around $1.15, near the top of its ramp-up. Ideally, I should have bought at 7:44 AM when I noticed a change in direction and set a stop limit at the 7:43 AM low candle ($1.08). This would have positioned me for success and allowed me to sell for gains around 7:47 AM. Instead, I bought at the top and sold at the bottom. Even with the late entry, respecting a stop limit at $1.12 could have mitigated my losses significantly.

I observed that the lows were respecting the 9 EMA (Exponential Moving Average), prompting me to buy in again at about $1.11. I should have cut my losses and moved on, but I held on too long and sold again for a substantial loss. The doji candle at 7:50 AM indicated market indecision and a likely sell-off, which I ignored. The MACD chart crossing at 7:50 AM was another missed signal to exit.

Big Win: NXL

NXL was my most successful stock of the day, although not without its mistakes. My first win was buying in at 9:44 AM at $2.41, noticing that the stock generally respected the 9 EMA. I set a hard stop limit at $2.40, and when the stock started pulling back around 9:47 AM, I took my profits at $2.72.

I bought back in at 9:51 AM at $2.71 upon seeing a hammer candle, indicating strong buying interest. The price soared to its daily high, and I took my profits at $2.86 when I noticed a pullback.

I then experienced a small loss on my next buy due to a hopeful but incorrect prediction. However, I had a good stop limit, minimizing the loss. Finally, I capitalized on another green hammer candle, securing a small gain by selling at the right time. This last move was somewhat lucky, but effective, with a stop limit at $2.65 to safeguard against potential losses.

Overall Takeaways

Today was a mix of wins and losses. Key lessons learned include the importance of setting effective stop limits to minimize losses and avoiding the temptation to keep buying into stocks after securing a win. It's often best to take your gains and move on rather than being greedy for more profit.