Hi! So if you don't know who I am, currently I am a trader who fucks up everything and I have confidence issues, I made rules for myself which again today I followed, you have no idea what urge I felt to revenge trade, in fact I didn't even short the double top on $BCRX which was on my today's watchlist you have no idea how emotionally fucked up I was today after losing another 75$ (loses add up eventually) it instantly went up 20 cents, then seeing $BCRX fucking crashing, unbelievable but I am working on consistency, I decided that in order to be consistent I to limit myself to JUST ONE DAY TRADE! per day that is.
You might be reading the title thinking yourself it contradicts the first paragraph, but the thing is, compared to my 2x $AVEO, $CNIT fuck ups, this ~76$ fuck up $CDXC, my largest lose to date, is okay with me for the simple reasons:
1) This is a setup I believe in (statistically)
2) I followed my rules throughout the day
4) The fuck up was on a mistake I will never ever do again and it is easily preventable
Now what were the lessons from my trade on $CDXC
*I should not trade pre-market unless there are >70 trades by 9:30.. (again sheets statistics) seriously 70 trades within a hour/40 min before market open pretty much dictates day open but if there are just window dressers who made just 20 illegal trades, there is no reason to trust the setup.
*Cancel my fucking orders before amending them, for fuck sake this is the 2nd time this happens to me where I get a fucked up execution because I didn't cancel my order before putting a new one, I am so fucking retarded. Sheesh. (This is reason #4)
Honestly because I followed my rules, whatever the expensive lessons I earn by loses are welcomed as long as I follow these rules of mine.
I am surprised that I have no problems taking a loss so easily and not fighting a stock, this is actually funny, I just saw I was down with my biggest lose to date and I just covered a minute after getting executed lol - I mean, later on after thinking about it I got emotional and wanted to revenge trade but I didn't.
ALSO! my broker is basically fucked up by Hurricane Irma so limited operations from Monday to Thursday - for me it doesn't matter since I'm on vacation and I will not take a single trade the next week.
..I won't do a watch list because well.. I'm on vacation next week I will just be following what's hot on the market and see if I can learn anything from it
After going red on the day after a 4.50 test I am still bullish on this junk lying company currently under a class A lawsuit, because on the hypothesis they will try to fuck off as many loses from their crashing stock (more details in previous watch list..) by pumping their stocks by any means possible they remove victims, so it's in their best interest. Also the new CFO is not yet employed and I expect news to come soon that he has began his employment
want a theory? this stock will consolidate and then once it reaches 4.50 they will issue a PR Christie Brown is hired to form a break out - Overestimate? maybe.
Now for my "New Strategy" I wrote in the title
So currently my strategy is using max 135 shares - 100 shares means I need a 0.10$ gain to break-even, 135 shares mean I need 0.08$ gain to break even in exchange for adding 3.5$ to my loss whatever it may be. The reward? meh same proportions to the risk, just cutting on commissions.
Today I realized a new behavior in the stock market - not a pattern but a behavior. I don't want to write about it because literally I have no confidence in it and no statistics to back it up.
I made myself a plan where I want to steadily increase my account size to ~4k USD until January (expecting 200$ lose max per month until then - worst case I have 4k by January)
my new hypothesis/strategy requires big size to make any significant gains and have a good risk vs reward ratio - until January I can't do it. But after my vacation I will start recording data, I think I learned something important today on the markets.
The thing is, I don't even know how to determine risk - I will have to watch the markets, but looking at history this repeats a lot. I will write a blog post about it in the future once I am confident I am not misleading anyone.
Also sorry for a boring blog post, hopefully you learned something from this :) if you have a question ask below I will answer.