Daily Recap: Staying Disciplined Amidst Tough Trades

Today was another challenging day in the market. I managed to stay disciplined, limiting myself to just two trades and keeping my emotions in check. However, my entry points were not optimal, and I attempted to play bounces on stocks that lacked strong rebound potential. By the end of the day, I faced a loss of $38.47, bringing my account balance down to $842.60. Let’s review the trades.

First Trade: BBLG

BBLG was a premarket gapper without a new catalyst, making it an ill-advised choice for a bounce play. I entered at $3.33, hoping for a 200 EMA bounce. In hindsight, I should avoid dip bounces unless there’s a catalyst indicating a potential return to the high of day. Additionally, the RSI was trending down, further weakening the case for a bounce. I set a 10-cent stop loss and got stopped out at $3.23, resulting in a loss of $17.55.

Second Trade: IMRX

IMRX did have a news catalyst, but it wasn’t strong enough to justify my trade. I bought in at $1.58 with a 5-cent offset, aiming for a 200 EMA bounce. The result was similar to my first trade. I got stopped out at $1.52, leading to a loss of $21.05. Again, I shouldn’t have taken the trade without a stronger catalyst and oversold RSI conditions.

Reflection and Lessons Learned

Today’s losses underscored some important lessons. I need to seek better trades and not assume stocks will rebound simply because they started higher. Strong news catalysts and lower RSI levels are crucial for successful bounce plays. Additionally, I’ll lower my position size to allow for a greater offset between entry and stop loss, giving trades more breathing room even if it means a higher take profit target.

Despite the losses, I’m encouraged by my ability to trade without letting emotions take over. Tomorrow, I aim to turn things around by identifying and entering better trades.