Plan: Buy $DCGD runup into close. Cut losses at 5%, sell at 10%. If holding overnight, sell immediately at market open next day.
Entry: Bought 10k shares at $0.91 at 3:51PM, wanted to get in cheaper but started climbing quickly. Couldn't get out before market close.
Exit: Gapped up overnight, opened around $1.02. Frantically tried to sell before price dipped. Got out at $0.925 at 9:33AM.
Profit realized: $136.10 paper money
Summary: Just started using Thinkorswim desktop software, and not familiar with trade process yet. During the frenzy of trying to sell this morning, I botched it because I couldn't find the right button for sell limit. Quickly pulled up the software on my phone which I am more familiar with, and placed a limit sell order. However, I screwed up the limit! Price was quickly dropping, around $0.96 at the time, and I accidentally put $0.096 as my limit! (Extra decimal place...) My order was quickly filled for $0.0925, and I wondered: What the hell just happened? After reviewing, I found out my mistake...
Takeaways: Luckily this was a paper trade, and still made a small profit, but things could have easily went the other way. I learned some valuable lessons here:
1. I should get to know my trading software better and become very familiar with the ordering process.
2. Be prepared to sell AHEAD of market open, so once the bell rings all I have to do is click a button.
3. Don't get too caught up in the frenzy and anxiety of market open/close/price action and make a mistake. Slow down and think clearly before executing.
4. Ideally, don't hold volatile stocks overnight, especially OTC stocks. Make sure I am prepared to sell just before market close unless I am super confident in the trade. 4:00pm can sneak up on your...If price had gapped down, I would have taken a loss.
Thanks man, I’ve come a long way the last few months. Pretty good at ToS now, currently finishing up a spreadsheet to analyze the 70 or so paper trades I did the last couple of months, still paper trading. Watching DVDs and getting to where I know a good play when I see one now, and looking at old bad trade charts like “what the hell was I thinking?” Looks like you’re doing well too, what’s the latest with you?
That’s good advice man, thx for that. I think I’ll paper trade until the end of the year and then switch to real $ and take super small positions like you said. Merry Christmas and a prosperous New Year to you and your family. Keep at it, you’re doing great (cuz you haven’t blown up!)
Hey guys get in touch if you wanna have trading chats! I made my first trade with real money on March 16th so I think am around same stage of journey as you guys
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