You have done your homework and your watchlist is in place. The market opens and a few minutes go by and your tickers are not doing too much. You check the chatroom and you see a few tickers being mentioned. You see the words "ripping" , "on fire", "going crazy", and "wow check out..." Your tickers are still not doing too much so you start to chart those 'chatroom runners' and even though you are kind of late to the game you make a 'I can't miss out on this entry" and you end up buying at the top (per the current price action) and price dips from there. In your haste you exit with a loss only to see that was a pullback within the trend and price moves back up from there and that previous top gets taken out by a higher high.
Yeah, you're kind of mad right now.
You go back to your 'homework tickers' only to see that half of them have put in a signal that you were looking for and started to move...without you because your too angry from your loss from that trade you should have never have taken in the first place.
You did not want to miss out on what could have been and your homework tickers are really all you needed.
You will find out more often than not that if you stick with your watchlist you will do just fine pending you are at the point where you know what stocks to trade and not to trade. It all comes down to havgng the discipline and patience of knowing when to trade and when not to trade.
Thinking you are going to miss out on a trade that everyone else is making bank on is just one hurdle to get over. My schedule has been kind of 'wacked' the past several weeks, especially for the morning open and it has been difficult for me to find the rhythm of things an hour or so after the open. Missed out on $ARRY and $RGSE but it doesn't bother me one bit. Those runs will happen again. Things will get back to normal for me in a few weeks but missing runs on stocks like these doesn't phase me.
Gotta let the market come to you and take action when the opportunity presents itself.
Just a few random thoughts...
Trade smart.
Palmer
I honestly feel my first six trades were completely based on me feeling like I was missing out and I ended up buying at the top instead of the pullback. I have taken some time off to study and I am definitely going to stick to my plan now!
@Shimmel21 it's easy to get distracted on the open from 'runners'. some of them do put in massive moves but the majority are the same 15 or 20 % moves that you were waiting on per your watchlist.
The big difference is that you are prepared for your 'watchlist moves' and it is a lot more relaxed and controlled state of mind type of trading. It's a matter of waiting for your setup to happen.
Thanks your blogs are very helpful!
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