There are no mistakes only lessons. Well, I learned some really good lessons. I had bought $DUST at $6.35 on 2/9/16. On 2/10/16, when I awoke then next morning it was at $8 and falling. Although it was premarket, I had that take profits mantra going through my head. I was expecting a morning spike and my instinct said to wait for the morning spike, but I didn't listen. I tried to sell and missed, I tried again and missed, finally I set a price of $7.55 which was 10 cents below the current. SOLD $7.55. the price was at $7.65, but sold mine at $7.55 then continued right at $7.65. AND of course went up right away. By market open, it was back down to just below my sell price and yes the morning spike happened. So for the next 2 hours, I berated myself, for being sooo stupid. So what did I do next? I did something even worse. My instinct said the price was going down. The charts said the price was going down. I even knew it was going to be hitting the low around 1:30. So what did I do? I bought at $7.69 at the first green up tick at 12:38. Then I watched it fall. Yes, I just watched. Did I cut losses? Hell NO! that would have wasted a day trade. Besides I knew it would go back up eventually. Then the price consolidated. Here I thought was the new bottom. So I should buy here. It was like I totally forgot that I bought earlier and was holding a loss. I bought at $7.34. And watched it continue down. Then the truly stupid came out. The price had gone back up to $7.40. I sold 200 of the 2000 shares I had. I still have no idea why only 200. It wasn't a typo. I had it in my mind that I needed to sell 200 shares and I did. The thought of "the price will go back up" was running my mind. The thought of cut losses quickly was being pushed aside. I saw the price at the end of the day was $6.99. "It will go back up, don't worry" the dominating thought in my head said. Only to wake the next day with the price at $5.50. I was over $4,000 in the hole. My biggest loss to date. I still haven't sold. I was unable to do anything yesterday but worry.
Lesson 1: Listen to your instincts
Lesson 2: Cut Losses quickly (To hell with a Day trade)
Lesson 3: Don't add to a bad situation
Lesson 4: Know exactly what you are doing and why
Lesson 5: (for everyone else) Do as I say, Don't do as I do. Learn from my mistakes, so you don't make the same ones.
Man that really sucks! I've been there many times....adding and averaging to a loser with the hopes of it coming back.. Keep your head up and learn from it. I hope it goes back up for you.
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