hi NoDoji
Here's an example of my recent trade wfc:
wfc3.gif is intraday 1 min interval chart
wfc2.gif is 20 days chart
At 9:35am, i rush to buy wfc at 9:35am at $27.64, size 500, the reason being on seeing 20 days chart, it has been beaten down quite badly, so today it is gap up +1.5%, so i thought today is strong rebound day, bought in without any stop, and don't want to miss the boat
Then 9:39am it goes to $27.45, then 9:47am, it goes higher to $27.68. Then started to go down $27.37, then up to $27.5, then down to $27.3 at 10:07am.
At 10:12am, i average in 1 time at $27.38, size 300, thinking this is quite low price, and also thinking now at 20 days chart, it is quite low in price, cannot drop lower.
Then it drop to $27.2 at 10:30am, then goes up to $27.44, then down to $27.35.
At 11:21am, on seeing the environement turning bad, i intend to cut loss and take a loss -$202.
The above is just an example of how i bought without stop, and did 1 time average down. I will try not to average down more than 1 time, because i have encountered too many average down monsters
Pls comment thanks.
ps, any good chart software to recommend, now i'm using prophet.net charts
Here's an example of my recent trade wfc:
wfc3.gif is intraday 1 min interval chart
wfc2.gif is 20 days chart
At 9:35am, i rush to buy wfc at 9:35am at $27.64, size 500, the reason being on seeing 20 days chart, it has been beaten down quite badly, so today it is gap up +1.5%, so i thought today is strong rebound day, bought in without any stop, and don't want to miss the boat
Then 9:39am it goes to $27.45, then 9:47am, it goes higher to $27.68. Then started to go down $27.37, then up to $27.5, then down to $27.3 at 10:07am.
At 10:12am, i average in 1 time at $27.38, size 300, thinking this is quite low price, and also thinking now at 20 days chart, it is quite low in price, cannot drop lower.
Then it drop to $27.2 at 10:30am, then goes up to $27.44, then down to $27.35.
At 11:21am, on seeing the environement turning bad, i intend to cut loss and take a loss -$202.
The above is just an example of how i bought without stop, and did 1 time average down. I will try not to average down more than 1 time, because i have encountered too many average down monsters
Pls comment thanks.
ps, any good chart software to recommend, now i'm using prophet.net charts
Quote from NoDoji:
You're overtrading instead of waiting patiently for high probability setups and/or you have no idea how to place stops that are likely to survive. Whenever I enter a trade based on what I think will happen, but the confirmation has not yet occurred, I get stopped out. It doesn't matter if I use tight stops again and again, or if I place a wide stop, it ends badly because a true setup has not yet occurred. I can be completely right on direction, but too early in makes "right" meaningless.
I've had some overtrading days in the past few months, thankfully rare. They were losing days despite several awesome trades occurring. What would happen on these days is I would get into a trade, move my stop too soon, get stopped out, watch the trade move big time in my favor without me on board, then the cycle of insanity would start. I'd be looking to "get it back" and I'd enter a trade too soon before it was "ripe", then get stopped out, try again, stopped out, and finally I'd catch the confirmed setup, watch my P/L get back near break even and...exit the trade (whew, back to even!).
Do you know what happened next? The trade moved further in my favor big time. Why? Because it was an actual CONFIRMED setup. So as a result of impatience and overtrading, I let my losing P/L influence a truly excellent setup and I'd leave 2-3 times on the table what I took out of it.
I started asking myself: What would happen if I waited patiently and ONLY traded one confirmed setup like that each day and allowed it to run? The answer is that I'd make enough each day to pay my bills!
Please post a chart of the AAPL trade above and indicate your entry exit points and a bunch of us will tell you what you did wrong
