I am finding out that a high number of my stocks prove to be correct but I am not sticking around long enough to cash in. Two reasons - either I cut a losing position before the stop loss is hit not liking something with the stock or the market or I cut it lose because it is taking too long to go in my favor. I had 5 trades today. One was for a gain and the other four were loses. The net has down $150 (no big deal) but if I had held to my original stop loss idea. One came to a cent of the stop and the others did not. Giving these stocks enough time to move could have made this a very good day for me.
A second thought of the day, is I am finding myself not fully following my plan I have for each trade. At the beginning of the premarket, TELK was trading many more shares than it should - a Biotech with trial results. My first buy was 500 shares at 6.75. I had planned to buy a least 2000 shares as a base position where if the trade went in my favorite I may add an additional 3000 shares. After the first buy the stock never traded above 6.75 and spent most of the morning between 6.40 to 6.60. I know you should not add to a loser but the plan was to build the position and maybe at a better price. Being 25 cents under on a 6 dollar - I lost my nerve and sold the position at 6.50 instead using the lower prices to build a position. As you can see it never went below 6.30 and was mainly between 6.40 and 6.60. If I has bought the rest down there, I could lowered my cost to maybe 6.50/6.60. See above - I would have also needed to sit on my hands until the open. A course the stock popped on the open and ran to 7.50 before falling back.
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A big sign is above my desk which I fail to read as often as I should -
The Most $$$$$$$ is made by sitting on your hands!!!!!!
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