Learnings from a failed trade

Dammmmmmmnn!!

I lost some amounts again today for trading 2 stocks that I’ve had given a good amount of time last weekend in planning how to trade it.

It is PMPC and LMG this time around. Both are,I believe, following the DNA of ALCO. And so, I used the said stock as their fractal. I traced the movement of the base of ALCO using the Wycoff method. Determining their 1-7 legs before its monstrous parabolic run.

Lots for learning and realization from those failed trades today.

  1. I should have bought at the support of their trendlines. Duh,basic! But I’m stupid.

    Because of FOMO, I bought at higher prices,clinging to hope that it would rally much farther and it won’t go back to my average entry price. Both indeed rallied in the morning but came down right after. IPIT. Sold them at a loss. And I also forgot to make it a priority of watching the INTRADAY charts closely.

  2. Treat every stock I enter as a daytrade-only and watch them closely using INTRADAY chart. Never buy without opening the intraday chart.

    That if I bought them at close the prior day or on the open today, I would sell them if they brokedown from my EMAs using INTRADAY chart! If it doesn’t go down until closing,I’ll hold it the next day and use the high of today as trailstop. If it survived the rally on the first day then I’ll treat it as a good entry for my Trend-Following. But if it goes down instead, I’ll SELL ALL SHARES. No ifs and buts. SELL THEM ALL!!!

  3. Use GTC to buy the target stock at the price of the support/below of the DARVAS box.

    Don’t buy the current price. Don’t rush and please be verrrrryyy patient, meself. Accumulate at the support when the stock is silent. And never chase a flying stock. Should you chase a fast moving one, apply Ceiling Play and INTRADAY trading rules. SELL THEM ALL if it break the EMAs.

  4. BELIEVE IN YOUR GUT FEEL! 

    Should you feel that a no-activity stock at the opening is likely to rally,BUY IT RIGHT AWAY!! Don’t give time to think about it cause you already did so last night during your planning! Follow your plan! Don’t freeze out and overthink! Buy it! Buy it! You’ll sell it anyway if goes down, but if it rallies then consider yourself lucky for buying it first before anyone else.
    -PMPC experience during the open today (February 27,2017)

  5. Use INTRADAY charts to BUY using the breakout theory of the EMAs,RSI and DARVAS BOXES!
  6. Always plot DARVAS BOX after buying!
  7. Give attention to the  INTRADAY charts after buying for a possible breakdown.
     
  8. Use INTRADAY charts to SELL a stock that brokedown from EMAs and DARVAS only!
  9. INTRADAY charts!
  10. INTRADAY charts!
  11. INTRADAY charts! 

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