This week I have managed to blow one of my trading accounts entering the
TSLA
. Market. I'd like to share my experience of losing this trade, as well as share the mistakes, as well as emotions I was truly feeling while in this trade, so if you, a new trader, want to learn from other traders, like myself, mistakes, now is the ample opportunity.
I have managed to learn how to break my trading plan, once again.
I am not afraid to admit, I did, what many new traders do, jump in, not knowing where the wave is actually going. What will set me, as well as , you (yes you reading this) apart, is your ability to "identify" where the wave is going, and when to get off at shore. I filled my order last Friday, and allowed this trade to run, meaning I did not know where to get off shore ... over the weekend and greed kicked in. I did not set my stop loss at break even. It is imperative for me to start sticking to the principles I have set in place because if I can't follow my own rules, I will not be a profitable trader. I must develop the habit of setting a stop loss. When the market opened Monday, since this is a stock pair, the price dipped tremendously. and it was in the red $222. I had let it continue to run until 10am, and I faced a margin call. My broker automatically closed this trade, because, I did not have enough capital to hold. I also held this trade past session and had to cover a swap fee.
Learning how to trade has been the best decision I have ever made. Once I started taking this seriously, I am starting to witness the small results start to show: from learning price action, risk management, and fundamental analysis. There are so many elements to being a professional day trader, and I am here for it. The biggest lesson I learned from this trade, was to stop holding forex trades. Get in there, catch the wave, and get off at the shore, before you get swept back in the ocean!
In conclusion, I'd like to share my trading journal entry..
DID I FOLLOW MY PLAN?
No. I exercised NO risk management
Held the trade over the weekend
No Solid Confluences.
WHAT DID I DO WELL?
1. Not Applicable On This Trade..
WHAT CAN I DO BETTER?
1. Calculate My Risk To Reward Ratio
2. Set up A Fibonacci For Stock Pairs
3. Have A TP/SL Plan Written Down Before You Enter
WHAT DID I LEARN?
1. No Confluence, No Trade
2. Sticks Are Different From Forex Pairs
3. Quit Holding Trades Over The Weekend!!!
DID I PREPARE PROPERLY?
NO, I entered a trade without valid Confluence, I did not follow my trading plan rules, and I held the trade too long.
Next time I set my MUST wait for a confirmation. calculate my risk-to-reward ratio before I set my stop loss, set my price target, set a Take Profit, AND Stop Loss, enter it in my Metatrader app, and double down.
Keeping at least one hand on the wheel with
TSLA
TSLA
. Market. I'd like to share my experience of losing this trade, as well as share the mistakes, as well as emotions I was truly feeling while in this trade, so if you, a new trader, want to learn from other traders, like myself, mistakes, now is the ample opportunity. I have managed to learn how to break my trading plan, once again.
I am not afraid to admit, I did, what many new traders do, jump in, not knowing where the wave is actually going. What will set me, as well as , you (yes you reading this) apart, is your ability to "identify" where the wave is going, and when to get off at shore. I filled my order last Friday, and allowed this trade to run, meaning I did not know where to get off shore ... over the weekend and greed kicked in. I did not set my stop loss at break even. It is imperative for me to start sticking to the principles I have set in place because if I can't follow my own rules, I will not be a profitable trader. I must develop the habit of setting a stop loss. When the market opened Monday, since this is a stock pair, the price dipped tremendously. and it was in the red $222. I had let it continue to run until 10am, and I faced a margin call. My broker automatically closed this trade, because, I did not have enough capital to hold. I also held this trade past session and had to cover a swap fee.
Learning how to trade has been the best decision I have ever made. Once I started taking this seriously, I am starting to witness the small results start to show: from learning price action, risk management, and fundamental analysis. There are so many elements to being a professional day trader, and I am here for it. The biggest lesson I learned from this trade, was to stop holding forex trades. Get in there, catch the wave, and get off at the shore, before you get swept back in the ocean!
In conclusion, I'd like to share my trading journal entry..
DID I FOLLOW MY PLAN?
No. I exercised NO risk management
Held the trade over the weekend
No Solid Confluences.
WHAT DID I DO WELL?
1. Not Applicable On This Trade..
WHAT CAN I DO BETTER?
1. Calculate My Risk To Reward Ratio
2. Set up A Fibonacci For Stock Pairs
3. Have A TP/SL Plan Written Down Before You Enter
WHAT DID I LEARN?
1. No Confluence, No Trade
2. Sticks Are Different From Forex Pairs
3. Quit Holding Trades Over The Weekend!!!
DID I PREPARE PROPERLY?
NO, I entered a trade without valid Confluence, I did not follow my trading plan rules, and I held the trade too long.
Next time I set my MUST wait for a confirmation. calculate my risk-to-reward ratio before I set my stop loss, set my price target, set a Take Profit, AND Stop Loss, enter it in my Metatrader app, and double down.
Keeping at least one hand on the wheel with
TSLA