This week I didn’t follow the rules. It bit me in the ass for lack of a better phrase. In the last two weeks I’ve had a hot hand and still being relatively new to this with 10k in profits over that timeframe I caught myself back sliding into old habits. $LXRX I thought I had a winner up big pre market, high of $4 I bought in near $2.88. That turned out to be horrible decision, but worse than buying a stock that had been trending down in the premarket I held on to it. Not only did I hold on to it I tried to average down on a falling knife expecting some form of a bounce. So here I am holding a bag of $LXRX overnight hoping for some positive movement to get out of this stock for less than $1000 loss.

 

 

 

Had I followed the rules I could’ve cut my loss not sunk a bunch of my free capital into this failed breakout, and been able to take my capital to another ticker and try to recover some of my losses. I’m still learning and small losses are ok, hanging on to a loss and watching it go from a $300 loss to a $1000 loss isn’t ideal.

 

 

 

Not taking profits was the other issue I’ve had with myself this week. $CAPR I could’ve offed in the premarket at 7$ and bought it at what I paid for it the day before on the opening dip. I missed a great swing opportunity and reduced my overall profit by selling at 6.56. Aiki same thing instead of just holding I bought more way too high. I could’ve sold premarket for 1.60, and bought in at 1.11 and sold above 1.20. Bad entry bad exits and a complete lack of a plan lead to me taking a few lumps instead of some solid profits. My eternal optimism of holding a position thinking it’ll continue to climb has bit me many times before. I need to learn to be thankful for my gains and move on.

 

 

 

Many failures this week and many more to come I’m sure, but as long as I keep learning and progressing more profits will come. I’ve highlighted many of my weaknesses through posting my trades and realizing what I’m doing wrong. As long as I continue to be self-aware and learn from my mistakes, I can become better.