Good Day Everyone,
As a Novice Penny Stock Trader this is my first blog post. I was going to originally focus on the trade of AMMA. However, I believe CLSN is more relevant due to it being fresh for the week and the devastating effect it has had on my trading psychology.
The Title of this BLOG: Make GOOD Habits by Following Your [Own] Rules is self explanatory. We have been taught by Tim Sykes that the #1 Rule is Cut Losses Quickly. I would agree. It is just that until something horrible happens for the most part that is when I learn why I must follow my rules. You know the old saying, "A hard head makes a soft behind." And of lately the markets have been whooping my behind.
I admit that I am freestyle writing this blog. I will just touch on a few of My Rules that I have broken that of course led to me breaking more rules and thus loosing on trades.
Rules: 1)Do Not talk on the phone while trading..[As a newbie it is too distracting] 2)Do Not Trade on Wednesday..[I have had some of worst losses on Wed, also gives me a break for PDT Rule] 3)Only Trade 9:30a - 12:00pm or 3:15pm - 4pm 4)Only trade stocks with solid indicators. 5)Be HUMBLE 6)Do Not Get Greedy
So in short when I traded CLSN Pre-Market on Wed., Oct 4, 2017 I broke all these rules. I have more rules...these are the ones I broke. I was cocky and greedy over the previous days' wins. I had made the most in one day ever ~$491. I had gained on CLSN the day before and decided to grab another $50 or so before the market open[trading in a way I had never before while talking on my cell]. Tim posted a wonderful Video Lesson about how CLSN was over-extended! I was busy breaking My Rules so I didn't see it until the next day.
I recognize I am a novice at day trading Penny Stocks. I refer to myself as a Student Day-Trader of Penny Stocks. This helps me keep myself in a humble place. With every trade, gain or loss I realize I have so much more to learn. Wed's trade of CLSN rocked my "Newbie World".. LOL! I had an emotional episode all day....and realized Friday I was not yet ready to trade..hence the LINU loss... I am going to stop here. This Journey of being a Student Day-Trader of Penny Stocks is just in its beginnings for me. I am learning so much about myself and having to examine why I have taken certain actions in trading. To all the Newbie, Student Traders the RULES you create for SUCCESS are Your Own; based on Your Personality, Desires and Goals. I end with this bit of advice.........
"Make GOOD Habits" by having the Discipline to #1) Follow Your [OWN] Rules!
Thank you for taking the time to read this blog.
Success to everyone in trading!