Each day I’m striving to be a better trader. That comes with working on my psychological side, research about stocks in play and protecting my profits.
In the first couple of months when I blew up my account I really struggled with my emotions. I felt awful when I entered the trade at the top and lost as it went down hoping for it to continue back up. Then I did the same short selling at the bottom and getting squeezed. I was chasing to say the least. I was bag holding. It was awful but I got over the feeling bad and stopped to analyze what happened to those trades and used them as positives.
Why was it when I tried to buy at the top did the price drop? Why was I chasing the price action? A whole bunch of why’s that I had to learn for myself so I would understand the theory behind the price action. The why I was chasing was easy. I wasn’t finding the stocks and picking my entries I was chasing alerts. They are great if you get them quickly, but email alerts are slow now-a-days.
So I strived to be able to find stocks that are in play. How I create my watchlist goes like this….I go to finviz.com and I click on screener and then technical. I select short float over 15% and relative volume over 2 and current volume over 200k. Then I sort by RSI and I look at the charts to see if the stocks look interesting.
Then I go to Equityfeed and I open the market view and filter the stocks $0.5-40 with 200K in volume over 200 trades. I look at the % change for the day up and down and look at the charts for daily and 5,10 days. I add the ones to my list that look like a good setup.
Then around 910-915 in the morning, I open up my Equityfeed and I see what is in play for that morning and see if any from my watchlist are active. I try to pick stocks that have volume for easy liquidity and fairly nice % change in price for the reversal.
I have had people ask me why I trade the bottom reversals. For me it is an overextended chart to the downside that is oversold. The likely hood that it comes back to equilibrium for the day is fairly good if there has been a strong move downward. I go long because I can’t always get shorts with my broker and so I work with my limitations. I like going long as well because when you go long your maximum loss possible is your original investment if it drops to zero. If you go short you can get squeeze to the moon like what KBIO did to some shorts earlier this year.
I have learned to have confidence in my trades based on seeing the patterns over and over. When it does go against me I know it is typically a matter of time before it reverses and comes back up to my poor entry. Like I said earlier I always strive to have good entries, but sometimes I don’t cut my losses as fast as I should and it is an emotional entry trying to get in not to miss the action. I am trying to get better at waiting for my 3 green and not getting faked out to enter too soon.
I still learn a nuance each day. I will start to see something in price action or have a lightbulb moment and recognize something that I see day after day. I am very happy to be up roughly $4500 for the month and roughly $90K for the year.
If you follow me on Twitter you see that with this success brings some haters that don’t believe my trades are real because I am not able verify my trades on Profitly. Well my broker, Wells Fargo, doesn’t sync the software with Profitly. I enter all my trades manually with times and prices. Manually entering them all takes time and I don’t feel the need to spend additional time to take photos of every trade and post them each day. The setup for my broker is not the easiest and so I simply manually enter my trade.
It is tough to wake up to see someone calling you a bitch or whore when I have done nothing but share what I know and my experience. I know that person has looked superficially at the information and made a judgement call and hasn’t take the time to find out the truth. I’m sure it is the same for that person’s trading strategy where they don’t do the studying and are losing.
I know there are jealous people out there, but the truth is you can accomplish any goal you put your energy towards. With baby steps and knowing yourself most people can learn to trade. There are definitely some that have a natural talent for it, just like olympic athletes.
I try to be a positive influence and keep a positive mindset and don’t have time for the haters that judge with no knowledge. It makes me sad for their lives and how painful it must be to judge others day in and day out. How do they judge themselves?
I appreciate the support to everyone that helped me report the harassment. I am thankful for the online community of positive people that want to work for their success. I enjoy helping and sharing. As a mom it’s hard not to have those traits as well as teaching.
Ok enough of my soapbox story for the day. However know that when you become successful in trading you might lose friends and some very close people to you might become jealous. It is a shame but the truth. The true friends will be there and be happy for you.
I’m always happy to hear the successes of my followers. It is a great compliment. You do the work, but I help with guidance. Enjoy your weekend with you friends and family. This time can’t be replaced and is priceless. Today my daughter is 22 months old and a reminder that time absolutely flies, so enjoy each day.
As always I love hearing feedback from you. It makes my trading more personal and I like to hear how I can help you. If you have questions or comments you can contact me here or on Profitly, Twitter, Instagram, LinkedIn and Facebook.
This blog is for information purposes I am not a registered securities broker-dealer or an investment advisor. The information here is not intended as securities brokerage, investment or as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.