I had screened the charts diligently for potential buys the night before the market opens. I made sure that all the “checklists” for my stock candidate were met before selecting the stock that will save me from poverty. I used the MAMA Strategy by Gandakoh when selecting my stocks. The next day, when the market opened, I was more than eager to sleep and just binge eat as if those will turn my port to green for the terrifying truth graced my portfolio.
I had five… not just one or two but five losing streaks! What could have gone wrong?
I had initially bought JFC last Friday and was already existing in my virtual port. I just added SCC and SPC right after the market opened.
Surprisingly, the first two were false breakouts.
Frustrated, I checked back on SPC and wondered why I bought it at a higher price, I just noticed (since I was busy with JFC and SCC) that it gapped up.
I immediately changed to 5min timeframe as per the MAMA rule when the stock gapped up. Still recovering from my immediate failure, after 35 minutes when the market opened, I, again, cut my losses when the candle broke from ALMA.
At this point, I was in denial. I was continuously loosing. I wanted revenge and tried to ride WEB only to find myself cutting right after.
This was my biggest loss in my virtual port so far.
Did I mention that I was trading just using my cellphone? I was out for lunch and was devouring the unlimited samgyupsal.
With broken heart and bloated ego, I would like to share my realizations for these trades:
- Even when you have done your part, assignments, investigations, proper execution of your strategy, if the market proves you wrong, do not try to prove yourself right. (Hmm, so this is where the saying goes, “Do not try to beat the market.”)
- Only buy the number of stocks that you can monitor. In my case, I over confidently bought three (less than a month in trading).
- Check if you have enough time to watch the market. The market needs your commitment.
- When getting too emotional, just close your port and do not attempt trading. It affects your actions. Let go, take a walk or listen to music.
- Better not attempt to revenge trade and catch falling knives. In my case, I bought WEB. Tame your greed or get rid of it!
- Walk the talk and learn from your mistakes.
I had losing streaks but I had gained so much more experience and learning. If this happens the same way to you, remember, my fellow newbie, the process is more important than the goal.