Hello everybody,
I've spend the last 3 months studying all the DVDs (HTMM, trading tickers, pennystocking, shortstocking and others..) that I bought with my brother.
Today was a nightmare for me. I've roughtly did 6 trades in the last two weeks. I alsways played very conservatively, doing a watchlist everyday and sticking to my plan during the trading sessions. Cut losses quickly and let the profit run. I didn't win big money but I didn't lose also, until now.. I'm writing this post because I'm really really angry at myself right now, and maybe writing what happened to me will allow me to calm down
Today I decided to jump in $FHCO, which wasn't on my watchlist. At the last minute I saw several posts talking about the merger between FHCO and another company. I didn't even take the time to check if the news was true or not.. if the merging company was a solid one or not... Like a crazy gamble, I jumped in pre-market, not even waited for the market to open.. 3 minutes before the door bell, I jumped for 500 share at 2,03$. You will tell me, it's ok that's not a lot of money, but for me it unfortunately is. I'm a student and I roughtly have 2,000$ on my account.
At the market open, the stock begins to drop. Well I think I didn't even have a solid mental stop because I didn't even have time to think about it. I really was sure the stock would go up..
I hold until the 1,70 really hoping for a rebound, maybe people were going to buy this damn stock
But even after the 1,70 crack, I only cover all my position at 1,63.. A 40cents loss, even worst : a fucking 20% loss, $200 loss
Before that I really think I was under control and that I was never going to lose big money on my trades. I really think I was good at it and that I would stay in the green for weeks, years.. I just wanted to show to all new traders that a big loss can happen quicker than you think.
I'm really ashamed at myself and hope this will serve me as a lesson. I won't trade for the coming 2 weeks because I want that anger to go away first. Or maybe I shouldn't risk money anymore and concentrate on my studies. Because I spend so much time on trading, it has affected my studies.
Thank you for your reading and if you have any advices I would be very happy to hear them
@elliottmagic [In my humble and novice opinion] ...It's a theory I am working on. I've paper traded it for a few months now and it allways works.(a rare statement). I have not tried this at large volume because I am not risking much money until I have a metric and then test the bounds of that metric. I don't trade the commodity I trade companies with a heavy core in 1 commodity. Oil is my FAVORITE example. It is like clockwork. I can even tell you how much I am going to make before I even buy. S
@elliottmagic So I will explain this strat but I won't tell you what companies I do it in because it will be better for you to create your own knowledge base. I don't know the volume metric and it's effect yet. (ie, the more you trade something, you push the volume and effect the profit of your trades. It is a core concept used by large players known as a "pump". Pump is nothing but volume manipulation and a core reason to avoid half the stocks people on this forum talk about.
@elliottmagic I was going to link an extensive file that I created on this strat but, I think I need to rework it. There are like 100 factors to think about to do it correctly and I don't have it written very clear. I will work on clarifying it and send it to you. SO much of trading is instinct and broad market knowledge because there are like 100 things that impact the movement of price in a stock. It can't be packaged as easily as people want to sell you that it can be.
@NoviceUnicorn well if you could send this file to me i would be really interested. I'm currently writing my master thesis and I really contrate myself on "consistent profitable strategies" and try to come up with statistical results.
Join now or log in to leave a comment