Good week overall. Really beginning to become a disciplined trader. I am sticking to the setups I know and love and nothing else. Mostly flags. My best day this week was Thursday. Two stocks I have been watching, CYBR and FUEL gapped up. I didn’t hesitate to attack when I found a flag on both because I had conviction. The stocks that are very coiled up on the daily and gap up most of the time trend up all day. I was able to make my gains for the day before 11 and be done for the day.
One thing I’ve been telling myself the last few days after watching a BOWS bootcamp class is “Trust the chart”. If it is breaking out on the daily and you have a valid setup intraday and a clear place to stop out, go with it! That’s all you can hope for in trading really. If you do not trust the chart, DONT take a position, it’s simple. Trusting the chart will hopefully do two things. One, let winners ride longer and stop from selling too early. Two, help me from not trading my P & L.
I had a huge loss Friday because I tried something a little different. Thank god it was on a sim because I would have been crushed. I saw news that PBYI, a biotech company, had bad results on a trial for a medicine that was previously a good outlook. I had bias that the stock had to go down and noone was buying it. At the end of the day I was right but intraday it made it moves. I only took 25 shares short on the first trade but still got smoked. The spread was like $2. I immidiately had doubts when I entered the trade. I should have been 100% conviction BEFORE I entered the trade. Just a stupid play but good lesson for me to never do live.
Speaking of live, I believe I am mostly prepared and will open and account within the next 2 weeks. A couple things to get before that:
Look over trading/business plan again and make adjustments and print out
Look over trading rules and make adjustments and print
Create a reasons to sell list and print out
Type out scanning routines and print out
Other than that I feel I am prepared to put my money where my mouth is and get started for real. I have come a long way. Will post a weekly watch list tonight. PEACE
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