I Caught The Small Fish In Spite Of Wanting to Get The Big One

While emotions of people is what drives a stock's price 

to surge to heaven or plummets to hell, 

it is also the trader's Achilles heel.

                                                         CREDIT

I bought NOW last June 17, 2016 at a price of 2.82 per share (1st Tranche). 

I bought additional shares at 2.78 (2nd Tranche). 

The Following are my buy signals:

                   1.  It made a strong base after a decline (black line)

                   2. MACD is about to crossover and near the zero line (red box)

                   3. About to SWAG. I was still experimenting with the SWAG System (EMA13 Crossover SMA 20)

                   4. Consolidated with small candles for almost a month. (sign of accumulation)

 

When I bought NOW, I already had a plan in my mind. 

Cutloss when it close below 2.70.

Timestop of 1 month

Trailing stop with EMA13 once 3.00 breaks

Even with all this planning I sold my shares just a day 

before NOW made a 40+% rally from my buy price.

And I was like

Credit

But why did I sell my shares? 

I was monitoring NOW's price extensively. 

When I saw on the board that there is a great volume on  the sell side,

I assumed that the sentiment is about to reverse.

The "Board Analysis" influenced me greatly. 

I scrapped all my trading plan and decided to sell it. 

I want to realize that mere ~5% gain than incurring another loss, 

this is what dominated in my mind.

Not sticking to my trading plan was my greatest mistake in my NOW trade.

Emotions got the better of me. 

Because of fear of losing, I exchanged 

my potential 27% gain for that ~5% gain.

What I learned from this experience?

*When trading for short term, stick to your trading plan no matter what.

* Never make "Board Analysis" again.

*When you have a trading plan there is no middle ground 

- It is either a cutloss or a sell at the target price/ trailing stop.

If I may quote what my -self-proclaimed- mentor said:

"Not following your plan and you made a profitable trade is a bad trade 

while following your plan and you made a losing trade is a good trade"

This is true as long as you learn from your mistake and refine your trading system.

"As Always, Happy Investing and Stay Curious"