Lessons learned

Looking back at some chart analysis I made and trades that I placed (for clarity, I am not a day trader, more a swing trader):

  • Sugar (SGG) : almost -10% since my analysis. One of my rules is to wait 2 to 3 days or 2 to 3%. So I did not got in
  • Axcelis Technologies (ACLS) : went down hard, but recovered allready a lot (fake move ?). Same here, did not get in (2,3 rule)
  • Coca Cola (KO) : breakout confirmed (3 days) : will buy some tomorrow
  • Qualcomm (QCOM) : got in, against my rules. Should have waited for the 2,3 (days or %), Stop loss at -2%
  • St Jude MEdical (STJ) : Went down the 40 level again, so did not succeed the 2,3 rule
  • EMC : Did not buy : should have, bought QCOM instead (I thought to gain extra on QCOM as it would break out)
  • S&P500 short (SDS) : I took a small position, to get my feet wet. Now at -6%. I did not place my stop loss at -2% ( as I thought it was only a small position. stupid )
  • Citigroup (C) : had bought according to my analysis, but took profits. honestly, on seeing the absolute gain, not a plan on exit levels (should be)
  • General Electric (GE) : The analysis was correct, yet I did not buy (why not ? stupid)
  • United States Natural Gas Fund (UNG) : did not buy & support was broken (good call)

Why am I writing this ? Because I am frustrated, ha!  Market keeps moving up, and I placed the “wrong” trades. So you start doubting yourself, but then having a trading journal helps to reflect on past actions. I learned a a lot from the Traderfeed blog

Reviewing my journal, I see some learning points, but also can have my trading plan better defined. Some of my rules so far :

  • enter with a small stake (25% of what I want to invest er trade). increase if it goes well
  • stop loss of -2%, also If I am in with a smaller trade. (Other ideas on stop losses)
  • 2,3 rule (2 to 3 days confirmation or 2 to 3% gain)
  • Do not chase the market (the future is full of new opportunities)
  • plan the trade, trade the plan
  • Still to fix exit levels when making profits

So, the moral is fine again now :-), scanning for new opportunities.

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