Now I've had two more losing trades after my big KBIO mistake, and they both ran almost another 100% after I cut my losses and got out.
I got into GBSN at .151, cut losses at .1441, and then it ran to .26.....
And I got into ATV at 10.50, cut losses at 9.65, and then it exploded to $20.
Both started running within an hour of me getting out.
Now it is extremely frustrating when this happens, but I feel like I didn't deserve to make a profit on these trades anyways...
I didn't really have a plan getting into either of them, I just got back from vacation and was trading just to trade, in hopes of putting a little dent in my KBIO losses.
I think the big problem here is that I no longer really care, or am emotionally interested in my trade when I trade small positions... My thoughts getting into these trades was "oh well, who cares if I lose $50 bucks, thats nothing."
This is exactly why I think I lost...
Im going to get back into the markets tomorrow with a clear head, knowing what I did wrong and utilizing the lessons I learned from these mistakes to do a better job. I will continue to trade small positions, but I won't be thinking in terms of $, I will be thinking strictly in terms of my performance, my strategy, and my thought process going into trades. Just focusing on becoming a better trader.
Trading is a tough game, but I will continue to learn and progress!
I strongly suggest you journal about your feelings and emotions when you get in and out of every trade, it really helps you to see mistakes that you're making and how to correct them.
Good luck and Happy Trading!
Check out my blog at www.evolvingtrades.com
Everyone gets shook out of positions now and then. If you are respecting stops, that is good habit. But many times I have no good reason to close a trade. Now I use an hourglass to make sure I stay in for 5 more minutes (or until stop is actually hit).
That's actually not a bad habit to have. I wish I had a "Cut Losses Quickly" problem. It would have literally saved me $2000 but hey, I hold and hope and end up losing 40,50,60, and even 100% of my money on certain trades. Don't be upset about youur cutting losses. Take pride in it. You can never really 100% tell for sure that the stock will spike right after you sell. All you can do is say, "Hmm, this stock isn't doing what I want and the momentum sucks so I'm out".
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