Summary
Worse process trade of the day. I was stubborn, didn't stop out, and instead added to a loser, and was so damn close to being stopped out for the day. I honestly lucked out. This is not the way I want to make money, and this is not the kind of trader I want to be. On a very serious note, cutting losers quickly is the next important issue I need to work on for me trading.
Did Right
- Took my exits when I had the chance, as opposed to being greedy. I'm totally ok with taking bad trades off quickly as soon as they go green. These are not the trades to try and push things.
- Bought the 2nd dip, on the very bottom candle, because I noticed the major volume come in to offset the selling pressure. This enabled me to get a nice little rebound.
Did Wrong
- Got in too early
- Didn't cut the trade, once it turned into a loser
- Added to the trader, once it turned into a loser instead of cutting it!
- Held through damn near $7 of downside, all because of stubbornness; so fucking stupid.
Improvements
- Wait for an entry signal on reversals; either the volume spikes on parabolic moves (with exhaustion candle), or 1min 20ma cup
- Make sure you have a stop BEFORE entering each trade, and know where you're wrong!
- Cut losers quickly
- Never average down a loser, just get out instead. Only add to working trades, or trades that have no yet failed.