Daily Recap: Navigating Wins and Lessons
Today was another decent day in my trading journey, marked by patience and the continuing refinement of my strategy. Out of the two trades I took, one ended in a win, and the other in a loss. The day highlighted the importance of decisiveness in trading; hesitation cost me a better entry and a potential gain. Despite this, I ended the day with a profit of $44.32, bringing my account balance up to $1,102.46. Let’s break down the trades.
First Trade: AIRI
My first trade of the day was on AIRI, a top premarket gainer. The stock showed strong momentum, and I identified a solid entry point at $7.58. I set a stop loss with a 30-cent offset at $7.28. The trade played out well, and I was able to reach my 3:1 risk-reward ratio, selling at $8.48 for a profit of $62.97. Although the stock continued to climb after I exited, I’m satisfied with taking the profit when I did. The entry felt right, as it aligned perfectly with my rules and the momentum was clearly there.
Second Trade: GDC
The second trade was on GDC. After patiently waiting for another good setup, I saw a couple of opportunities. Unfortunately, I hesitated on the first entry, which would have been the better choice, and instead took the second entry at $6.95 with a 25-cent stop loss at $6.70. The price briefly went above a 1:1 risk-reward ratio, but I decided to give the trade more room to breathe, aiming for a 2:1 ratio. This turned out to be a mistake, as the stock didn’t reach that level, and I was stopped out at $6.70, resulting in a loss of $18.70. Had I taken the first entry without hesitation, I might have secured a gain instead of a loss. It’s a tough lesson, but one that reinforces the need for confidence in my setups.
Reflection
Overall, today was a decent day, with both trades offering valuable insights. The key takeaway is that hesitation can lead to missed opportunities, and I need to trust my setups and act decisively when my rules align. Trading is a continuous learning process, and I’m gradually understanding how to navigate different situations more effectively. I’m encouraged by the progress I’m making and look forward to further refining my approach in the days ahead.