Today's trading was sloppy and should act as an example of how NOT to trade... mind you I'm up $330 on the day and $1,500 since my HSNI loss... but my point still stands, if you trade sloppy you will not profit. Today I got lucky.
I started the morning up $418... what I've been doing is not trading after I hit a daily quota. In this case I was happy with my morning performance. I like watching the market and following conversation in the new chat, as you do sometimes get some great information and alerts... and I like watching the stock charts breaking out or breaking down... gives me a warm-fuzzy feeling! (I know get a life!).
The stock that (seemed to have played a lot of people today) I'm talking about is CVI. My first entry was at $5.08 early this morning. I took my position shortly before a TIMAlert was sent out, where Tim shorted CVI at $5.01. What appeared to be a sure thing after his email was sent out, ended up being a bouncy POS. CVI did drop, but it wasn't a typical "weeeeee" type short. Bouncy, inconsistent, hard to read... bottom line a complete waste of time.
I ended up playing this stock 3 or 4 times and I lost each time. My original position ended with an $88 dollar profit, however by days end I had a negative balance of $32.00ish. To add insult to monetary injury, I paid commissions on each of these stupid trades, because I let my emotions trade rather then my discipline.
Perhaps I was having a bad day, but just a reminder to all the newb jr's joining in the fun... DON'T FORCE YOUR TRADES. The odds are way against you as it is and your risk/reward is non-existent when you force a trade... or anything for that matter. Remember there are tons of opportunities, daily, to make quan. Don't beat yourself up if you do/did this, everyone does. Just don't make it a habit.
Good luck tomorrow.
BottomFeederMillionaire (can someone tell me how to center this??? THANKS!)
3 comments:
Hey, Noob, I made some big mistakes with CVI...might take a hefty loss tomorrow on it.
I wasn't happy about TIMAlerts either...really makes the stock harder to read because the stock always falls a good 4-5% after the alert and spikes 4-5% when Tim covers. It makes it hard to know what's really going on.
Don't force the trades. Such a simple truth and so hard to implement. I understand what you feel because I forced couple of trades today even though they were completely un-necessary. I guess it takes time for rules to really sink in. Let's keep trading and learning!
Good luck,
RJ.
Noob,
Why did you remove the seminar post? What happened? Was the plan scrapped?
On a side note, congratulations on OPTR win, I hope you are still holding!
RJ
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