My Fifth Trade – Part 2

In Trades by JC

I lost money on this trade as well. Yet another $50+ loss. $IMUC was the stock that I bought by mistake and even though I should have waited for some type of price action to occur first, I bought into good news. I really have no idea what I’m doing.

Bought 300 shares @ $1.01 = $312.99
Sold 300 shares @ $.96 = $288.00

Loss = $24.99

E*Trade fees for this transition = $19.99

In the end I lost $44.98

Can’t believe my account is not busted by this point. I’ve traded 5 times and lost on every one of them. I’m done for the day. In fact, I don’t think I could trade if I wanted to. My E*Trade account shows an account balance of $0.00 again. I’m guessing this is due to the fact I just sold my shares this morning. Maybe it takes a day or two for the money to settle back into the account.

Starting today. Anytime I have a losing stock, I’m selling it before the end of day. Hopefully that will give my broker enough time to collect on the trade and place the money back into my account. Unlike banks that are usually pretty fast about deposits and withdraws, E*Trade takes forever to move money around. I’m sure the SEC has a part to play in some of this.

I’ve been buying on good company news and chat room hype.

That shit ends now. If a company releases good news or releases a good earnings report, I need to wait until the price action dictates a reason to buy. I need to start looking at the charts and buying when a stock breaks through a level of resistance. Buying on good news alone hasn’t worked for me. The price action has to be there in additional to good news or I’m not interested moving forward.

Let’s not forget about trading volume. Yesterday morning $IMUC reported news and the stock was trading lightly before the market opened. I took that as a sign that people were interested. Overall the stock had some pretty good volume throughout the day, about 2,000,000 trades. Again I should have watched the volume more closely and waited for the price to break some prior highs.

I’m learning to trade stocks the hard way. At least I’m smart enough to realize where I’m fucking up so that I don’t repeat these mistakes over and over.