After my third month of the challenge ended this week, I have seen so much improvement since I started and since last month. My goals of breaking even have not been met yet. However this last week was my first green week. It seemed as if every single week another thing clicked. This last month I think I have really begun to understand the market well enough to start profiting. After some stupid losses this month I reassessed everything. I needed to figure out what patterns work for me and which patterns don't work for me. Another huge impact has been trading patterns that fit into the supernova type plays. Meaning that I only should play first green days on a recent runner. Don't trade a stock if it's been up multiple days. Wait for morning panics to dip buy into. And playing the supernova bounce. I found that these 3 patterns work for me and I understand how they work.
Now that I have found some patterns that work my goals for my next month is to break even. I won't be pushing gains and getting greedy; just taking it one trade at a time. My other goals are to learn to control emotions and be patient, even if I don't trade every day. Chasing a stock or just getting into a stock just because I get excited have always burned me, and I want to learn to control those emotions. Overall it's been a good month for me with a lot of improvement. Here are the biggest lessons of the month.
1. Find a pattern that works for you and practice it.
2. Don't look to trade every day, only if there is a good pattern.
3. Don't buy an overextended stock.
4. Cut losses quickly!