Learning from my Biggest Losses to Date – Respect Price Action & What the Chart is Telling You!

By | April 16, 2016

In this pictorial post, I took the time to go over my large losses in great detail to understand what happened. I hope this will help me remember what I shouldn't be doing as  trade day in day out. 

My long term goal is to get profitable and finally trade full time. To do this I must tame this habit of taking large losses. I was great at cutting losses quickly but recently it seems I lost that ability.

Today is my turning point and I will be working with my mentors Ed Martin and Dante Vicent  to contain this habit before I blow up completely

 

Below is a summary of my biggest losses and I will post the charts for each loss.

Biggest Losses - Over $100

And here are the MIGHTY Charts 🙂 Please note that these are 5 minute charts. I use the 5 munite for the set up but when executing, I prefer to use the 1 or 2 minute charts for my entries. I will be quick to say that most times I dont even look at the 1/2 minute chates but will start entering trades as long as the 5 minute set up is looking ideal

$VRX

Trade Summary - Trying to play the bottom bounce but had way too much size and broke the rules for this kind of strategy.

Biggest Losses - $VRX

 

Daily Chart for Big Picture

Biggest Losses - $VRX Daily Chart

$MA

Trade Summary - Was trying top reversal set up but didn't cut the loss quickly. Then to make it worse I shut down my platform but forget to cancel all outstanding orders. So I got short again during my sleep. Woke up 5 hours later and noticed I had a position. So from Friday and entire weekend I was praying it opens weak on Monday but got itchy during pre market and closed my position then it tanked at the open. Sometimes everything works against you. Just move on, no need to stress about it.

Biggest Losses - $MA

 Daily Chart for Big Picture

Biggest Losses - $MA Daily Chart

 

$RRC

Trade Summary - This is one of the dumbest losses. I was down $1100. Respected the chart, then got back in again when set up was ideal. Suddenly I was up over $800 but didn't take it because I wanted $1,100 so I could be even on the trade overall. I had so many opportunities to get out with a minimal loss but I stupidly waited for the big fade that never happened. In hinsight I should have listened when Dante said this thing looks like 50 50 here and could keep going up. The chart was even setting up with higher lows but I got stubborn. 

My other mistake was not taking the second trade off at break even (entry price). I should have set a hard stop and wouldn't have lost another $800 as that now blew my loss up to $1900! Crazy and really stupid.

Also, one thing I learned about Reversals is that they hardly work if the stock is up due to it being in a sector that is trending that day or week. Oil was trending up and all these Oil names followed. I traded blind. Didn't even know why $RRC was making the big move. I need to do a quick check on the stocks profile and avoid if its trending with a hot sector. I use the Trade Ideas software and finviz for this

Biggest Losses - $RRC

 Daily Chart for Big Picture

Biggest Losses - $RRC Daily Chart$MBLY

Trade Summary - Short Selling on the Gap down. Nothing really here but rather it shows the importance of setting hard stops immediately after getting into a trade. I have trouble taking losses and moving forward I will need to have a hard stop. The only reason I stopped using hard stops was after my moment of confusion. I set a top but ended up buying the stock and lost. I need to practice this one on the weekend maybe. In hindsight the daily shows I would have banked if I sat though the spike. 

One thing worth noting is that if you short a stock and it starts to base, you need to exit or reduce size and wait for another entry. Basing action is as good as consolidation and it turns into a 50 50 trade thereafter. Could go eitherway and that isn't the best way to trade.

Biggest Losses - $MBLY

 Daily Chart for Big Picture

Biggest Losses - $MBLY Daily Chart

 

$APOL

Trade Summary - Nothing to review here. I need to avoid under $10 stock as they don't suit my style at the moment. 

Biggest Losses - $APOL

 Daily Chart for Big Picture

Biggest Losses - $APOL Daily Chart

 

$UVXY

Trade Summary - Trying to bet against the market

Biggest Losses - $UVXY Daily Chart

 

$WYNN

Trade Summary

Biggest Losses - $WYNN

Daily Chart for Big Picture

Biggest Losses - $WYNN Daily Chart

 

$SM

 Biggest Losses - $SM

Daily Chart for Big Picture

Biggest Losses - $SM Daily Chart

 

$RAX

 Biggest Losses - $RAX

Daily Chart for Big Picture

Biggest Losses - $RAX Daily Chart

$WTW

 Biggest Losses - $WTW

Daily Chart for Big Picture

Biggest Losses - $WTW Daily Chart

$MA

 Biggest Losses - $MA 2nd Trade

Daily Chart for Big Picture

Biggest Losses - $MBLY Daily Chart 2nd Trade

$TSN

 Biggest Losses - $TSN

Daily Chart for Big Picture

Biggest Losses - $TSN Daily Chart

$CAT

 Biggest Losses - $CAT

Daily Chart for Big Picture

Biggest Losses - $CAT Daily Chart

$CASI

 Biggest Losses - $CASI

Daily Chart for Big Picture

 Biggest Losses - $CASI Daily Chart

$VRX

 Biggest Losses - $VRX 2nd trade

Daily Chart for Big Picture

 Biggest Losses - $VRX Daily Chart 2nd Trade

$HOT

 Biggest Losses - $HOT

Daily Chart for Big Picture

 Biggest Losses - $HOT Daily Chart

$MDVN

 Biggest Losses - $MDVN

Daily Chart for Big Picture

 Biggest Losses - $MDVN Daily Chart

$ETP

 Biggest Losses - $ETP

Daily Chart for Big Picture

 Biggest Losses - $ETP Daily Chart

$AMBA

 Biggest Losses - $AMBA

Daily Chart for Big Picture

 Biggest Losses - $AMBA Daily Chart

$ERII

 Biggest Losses - $ERII

Daily Chart for Big Picture

 Biggest Losses - $ERII Daily Chart

$RACE

 Biggest Losses - $RACE

Daily Chart for Big Picture

 Biggest Losses - $RACE Daily Chart

 

 

 

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