This will be the beginning series of my failed trades that will act as my trading journal. Will be posting these to learn from my mistakes. Failed trade #1 SKX:
Mistakes made:
1. Failed to recognize resistance zone and take profits at that zone.
- Make sure to expand your chart so you can see the stock from the BEGINNING. Set chart to monthly/weekly time frame if needed. I missed a resistance back that was present back in 2016.I was stuck on the short term time frame on the 30m chart, failing to recognize a vital resistance point to take profits and/or exit trade.
2. Poor options structure.
- Went with single call options on this one, I should’ve entered in as a credit spreads/short puts as this stock will move up, but gradually. Next time enter slow moving trends as a credit/debit spread to protect against corrective moves.
3. Failed to continue monitoring trade after the belief that I was good after a triangle break
- After that last candle on the triangle break, I stopped watching my trade for 2hrs or so while I was at work thinking that price would go higher, next time monitor big position trades closesly. No longer than 30m w/o checking.
Overall: I was up around 600 on this trade and then had to cut losses at the break below the support. I made too many mistakes here that are sending my acc lower and breaking down my mental morale. I need to start laddering my trades and drawing any possible resistance, getting rid of a portion of my contracts at those levels with the size of that portion based off of the strength of the resistance. Ex. Weak resistance 1/4 of contracts, strong resistance 1/2. I also need to focus on bettering my options structure, adding protective options legs to each contract rather than buying straight calls.
Mistakes made:
1. Failed to recognize resistance zone and take profits at that zone.
- Make sure to expand your chart so you can see the stock from the BEGINNING. Set chart to monthly/weekly time frame if needed. I missed a resistance back that was present back in 2016.I was stuck on the short term time frame on the 30m chart, failing to recognize a vital resistance point to take profits and/or exit trade.
2. Poor options structure.
- Went with single call options on this one, I should’ve entered in as a credit spreads/short puts as this stock will move up, but gradually. Next time enter slow moving trends as a credit/debit spread to protect against corrective moves.
3. Failed to continue monitoring trade after the belief that I was good after a triangle break
- After that last candle on the triangle break, I stopped watching my trade for 2hrs or so while I was at work thinking that price would go higher, next time monitor big position trades closesly. No longer than 30m w/o checking.
Overall: I was up around 600 on this trade and then had to cut losses at the break below the support. I made too many mistakes here that are sending my acc lower and breaking down my mental morale. I need to start laddering my trades and drawing any possible resistance, getting rid of a portion of my contracts at those levels with the size of that portion based off of the strength of the resistance. Ex. Weak resistance 1/4 of contracts, strong resistance 1/2. I also need to focus on bettering my options structure, adding protective options legs to each contract rather than buying straight calls.