I broke every possible rule you can think of today when it comes to trading stocks. I’d like to believe that my excitement got the best of me. I’ve spent 3 weeks studying the stock market and watching other traders. I really thought it was time to go for it.
No wonder so many people lose money!
I was in a chat room this morning and seen the ticker $ALKM pop up. It was being mentioned by one of the moderators. In hindsight, I don’t even remember what he was saying about it. At the time, I looked the ticker up on Yahoo Finance. The stock was selling as high as .50 cents a share last Friday. It was selling at .25 cents a share this morning around 9:30am CST. Going off of a “hot tip” and good news reported by the company, I assumed the stock would go back up today.
Boy was I wrong. I watched the stock go down in price from the very moment I bought it. I keep hearing that its best to get out of a stock as soon as you realize its a dud. You have to minimize your risk if you want to keep playing the game. I keep reminding myself that 90% of stock traders lose money. I found out today that when the adrenaline is pumping, common sense just goes out the window.
I didn’t even look at the chart to see if any type of pattern was there that would suggest a price increase. I was going off of the previous days performance thinking that lighting was going to strike twice. I think thats why I’m so mad at myself. I’ve been studying charts for weeks and have the basics down. Why I didn’t just stop and go back to the fundamentals is still a mystery.
This stock was being mentioned by someone, it reported good news and doubled in price the today before. Even with all these things going for it, it still dropped in price like crazy throughout the day.
I have several IT related service calls scheduled tomorrow and won’t be able to trade. The plan is to find a winner this week or die trying. I’ll have about $500 in my E*Trade account by the middle of this week. Shit is about to get serious because I’m going to start risking more in the very near future.
Today I bought 100 shares of ALKM at 0.25 cents. By the end of day each share was worth 0.10 cents. I’m out $15.00 on the trade and another $10.00 for E*Trade fees. In total, today’s lesson cost me $25.00. Practice makes perfect. Join me as I begin my career as a Day Trader. Bookmark this page then click the next story to continue.