Another damn trade that went sour.
Its these sorts of trade that really screw me up inside.
First up: wtf happened was this: I got in at Midas at $1.37 - the same price I got three weeks ago before that plunge to $1.06.
It made a healthy rise for the next 4 days. And it peaked this morning at $1.56. 400 lots done. Could have got out and walked away with $9000 net profit. Nine fucking grand. YOU MORON. ... ok. ok... calm down.
When I looked at the chart using "end of day line charting". It seemed to show that the resistance was at $1.65. This was wrong but I did clear it up later - and it did show resistance at $1.55.
See : Candle stick showed definite resistance at $1.55.
This morning it hit that level. Beauty. Then I decided to have some breakfast and wait around for lunch time and see whether more big boys would buy in and push the price higher. Great! I'm in the money now - $9000+. What else can go wrong?
Then the price suddenly fell off. Went from $1.53 to $1.48 in two minutes. No one knew why. My stop loss was raised to $1.50 but the price had broken thru - I should have automatically sold.
I was still in the money. I would have walked away with some profit. Instead I called up my broker and yapped about it but she said it was some fund selling to take profit. Fair enough- if they bought in at $1.20 a week ago, I'd do the same thing. Then more selling came in. The price came to $1.47. (Remember I bought in at $1.37) But like a monkey with his hand in the coconut trap, I didn't let go. I waited- and told myself ooook - definite stop loss at $1.44.
Problem is - if u say it to yourself in the head without writing it down, its hard to articulate in words.
So the price fell to $1.44 and I didn't sell. I bought more as the price dropped to $1.41. Then the news came out- a joint venture that was planned was rumored to fail. I read the news- but by the time it took to sink into my thick skull the price had fallen to $1.35.
I sold at $1.34 the low of the fucking day.
What did I do wrong again?
1. I got greedy. and thought I could wait for more.
2. I failed to look at the chart properly at the start. The resistance was at $1.55. I did see it this morning - but I thought this was going to be a breakout. That's fine. But when it did fall. I didn't react fast enough. Initially I thought it was just normal selling. Then it quickly turned into a rout and I didn't do fuckall.
3. Indecisiveness. Slowness in action. I got muddled looking at the price action as opposed to watching the stop loss.
4. No discipline. Failed to act on the $1.50 then at the $1.44 stop loss. Worse, I bought back in. In the end settled for the old stop loss - but by then I lost all my profits and incurred more capital loss.
This will not do. I got so upset by this then I got sick. I then promptly sold the rest of the stocks that were sitting in the money - like Noble. Today its up 5%.
Its a tight market now. Any sign of weakness is just gonna get hammered. Be careful.