This is about our trade in $P. This is one of my favorite types of setups – the bottom bounce. Everything had lined up perfectly. I was a day early on the trade, but I knew I was a day early, so I went in with that as my plan. The setup and the risk/reward ratio looked good.
Every trade has 3 parts: entry, exit, and the management of the trade. We had the right idea on the entry and exit, but totally mismanaged the trade. I let the excitement that was happening in the general indices scare me out of my position (this can happen). I also removed my stop and the exact spot I probably should have been buying as I sold right into a demand zone. Lo and behold, literally minutes after I sold the stock started spiking as it rightly should have. Even then, I still sat there all day watching the stock all annoyed that I sold it!
I give myself a D- on the trade. The only reason I don’t give myself an F is because the loss was small — $200 — and I’m still trying to make myself feel better!
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