The day is starting to roll out, first trading day of the week since Monday, February 16 was President’s day and the market was closed. Coming from a loss of $200+ in an $8,000 portfolio wasn’t good for me. I know this is a small amount compared to people who have a quarter million dollar stock portfolios, but since I am still learning the same lessons. a $200 loss in an $8,000 portfolio is like a $2,000 loss in an $80,000 portfolio or even a $20,000 in an $800,000 portfolio. If I can’t make it big in a smaller scale, I cannot do the same in a larger scale. Anyway all I am saying is $200 is still a big amount for me to just lose.
Prepared to just go sell at a market order, accepting defeat and further minimizing losses as the market opened, a few minutes into the trading day, I modified my trade to a trailing stop just to gain whatever small gains I can get. The market started high right out of the gate then started to dip back, went sideways a bit before rallying up again by 12:00 pm ET. Since the stock I got stuck with last week due to a purchase of a contra ETF with unsettled funds took a real bad hit for me giving the $200 loss, at least turned into a $150 loss after doing the trailing stop. I started with a 4% trailing stop, then as the market turned and rose again, I adjusted the order to a 1% trailing stop to get out of the trade saving what I gained for the day.
I also added a limit order to buy long for TSN, but I missed the bus early in the market open and one thing I learned is to not chase the trade. My limit didn’t make it and that was it for the day. I learned my lesson already from last week that I do not need to try to find a trade at the last minute just because I am trading nothing. I don’t need to be in a hurry.
My new strategy for now is:
If I do not see a confirmed up trend in the market, I won’t buy long yet. If I see a downtrend and has the time to monitor it well, i will go long on multiplier contra ETFs and go and out for a quick win. If I do not have the time, I will not go in the market and remain in a cash position.
Then in the meantime, I will start