Today I want to go over my major trades that brought my weekly profit near $100,000. Because I made substantial gains, I let my ego get the best of me and began overtrading. Controlling your emotion, especially when you’re on a high, has always been a subject we come back to because you can see the importance as I took a $14,000 loss for my mistake. I discussed $ABIL previously, but let’s look further into that trade as well as $CVSI.
With ABIL, I missed an incredible opportunity and would call this a bad trade even with my profits.
IN THE SHIFTS
At first, there was a momentum shift that continued to get stuffed, and with one million float, the float becomes irrelevant when it drops. Each day there were significant moments in the shift that felt dangerous, which should have been my first clue because not holding overnight resulted in my lost opportunity. I didn’t think about my entry and was too focused on the pattern. Even though knowing your patterns is essential, if you have a bad entry that starts to go against you, your nervous emotions begin to affect your reaction.
Pattern and entry, or risk management, are two factors in trading that you always need to be aware of because overtrading, just as I did, continues to burden you and allows for more mistakes to slide through.