Here is my first blog post explaining my novice training and some of the huge lessons I learned today.
It started off with $SNAP and making a horrible call overnight and holding onto the position. I tried exiting after hours but I believe since I had the trade placed in my paper trading account it wouldn't let me? At the high I was up over $2,100 on the trade. That being said I was still very upset with the trade because it was a gamble not a calculated risk. Poor decision learn from my mistakes!
Okay now onto the business. So $ABIL was on the premarket watch list this AM from Ross on Warrior Trading. Hit a high of day and I placed a trade to go long on a continuing momentum play. You can see up above I took multiple trades on $ABIL (all long and 1 fat finger mistake short) I wanted to create this post to remind myself some of the mistakes I made and actually a great play I did end up making.
1. Over trading: Plain and simple too many trades. Kept adding too my lossers cause this stock kept ripping up thinking I was going to make a quick $.20 cents and I wasn't even close.
2. Plan before entering. The first trade I placed I had no plan. I just wanted to catch the momentum. That my friends is called FOMO. Learn from my novice experience and say to yourself I dont know what Im doing and take your hands off.
3. Incorrect indicators. What I mean by this is that I wasn't looking at the right point of angle. Instead of looking at the specific chart pattern I was looking more at the price action. Looking for the right indicators or as Dekmar Trades calls it the U shape and triangle shape patterns are the go to plays.
My last trade on this was on the 21 day moving average. I was following this after my mistakes and it kept just bouncing off it. Literally like 3-4 times perfect bounces. So that last bonce (picture attached) I ended up buying in at $7.35 and selling at $7.89. It was a good trade yes, but equally I had to set a stop loss to make sure I made some gains because I was so down red on the day.. I was down around -$800 on $ABIL and made back +$550ish on that last trade. Its a learning experience and I still have a lot to learn.