That chart is drawn manually using Microsoft Powerpoint. That's why its' missing a lot of other info. Normally, i exit my position manually instead of using SL or SM as i am not familiar with them yet. But i know it is very important to have them just that in case if the market goes haywire too sudden, at least i have the SL or SM to "protect" my position from losing a lot. Thanks for sharing. Cheers~
^^Top quality answers. All i can add to what he did wrong was try to compete against computers as human in a game of speed. Annnd was he making that slight profit on a mini-short squeeze that was the spark to set off... more shorts? Well that doesnt add up imhhhhho.
Cheers.....If volume was on chart and had increase on first down bar, volume is like market's interest in the stock, I would have definitely gotten out near close of first down bar and most likely sold short.
To be honest, I think most traders need this kind of experience, in order to really grow as a trader. Until you've made such a mistake yourself, you don't really know how much pain the markets may inflict on you in short order. A loss should not discourage further research and refinements, as any traded money should be risk money only, but it will spark exactly the kind of practical execution questions that needs to be answered, before anybody can remotely hope to become consistently profitable. First step among many is really to become a break-even trader, and there are even many steps before and after that. Usually, each trader essentially need to invent those steps him/herself, but there are examples of temporary exceptions such as the Turtles. However, all traders should try to limit the psychological damage such losses can incur and always work to preserve capital first and foremost. So this is not a blanco to attempt to experience heavy losses, not at all. However, such experiences, no matter how bad, can always be used for good later.