Sunday Reflection

The past 2 weeks have been good to me.
Some things I did right.
Some I did wrong.
What better time to be dissecting my trading decisions.

Let's start with: SMC

So here's what happened:

- I bought SMC at 51.60 because it did a Zeus Strike but I didn't buy it immediately after doing the ZS, I observed it first for a couple of days and noticed it gets bought up at the close. So I bought.

- The day after I bought it, it shot up +15%.

- 2 days after, I put a sell order at 66.50 which is my target price.
- The next thing I thought of is doubling up since the worst case scenario would be losing my profits.
- I put a buy order at 56.20 which is just above the 200ma support.

Now here's where I f*cked up:
- I cancelled the buy order thinking the price wouldn't go that low and waited at a higher price.
- I was so eager to add to my winning position that I bought at current market price after only a day.
- 2 days after that, it dipped to my optimum price for doubling up! Exactly at 56.20!
- But instead of buying, I closed all my positions. At 56.25!

I sold it because of 3 reasons:
- When I sold it right after lunch, the candle was a long red marubozu.
- The index was down by more than 2%.
- I wanted to buy more DAVIN.

Then the stock closed at 60.00.

Thinking back on this sequence of bad trading decisions, here're what I believe to be my errors:

Error #1: I didn't have the patience to wait for the best entry. (the optimum risk-reward scenario)
Error #2: I forgot an important characteristic of this stock. (it always gets bought up at the close)
Error #3: I didn't wait for the close. (i get better results when I wait for the close)
Error #4: Fear of Missing Out. I wanted to buy more DAVIN.
Error #5: When I finally sold SMC, I couldn't push the buy button considering the current price of DAVIN that time.

Error #6? Up to now I haven't been able to summon the confidence to go back in.

Am I being too hard on myself for thinking about these much errors? Or am I just rationalizing?


Next stop: EEI

I bought this at 5.35, I was waiting at 5.31 but didn't get filled. So I bought at the close.

3 Reasons why I bought EEI:

Reason #1: I have a clear cutloss price. (5.19 to be specific, where I'll be risking P800 including commissions if my thesis is proven wrong)
Reason #2: The cutloss price of 5.19 was used in conjunction with the 20ma as support, if it breaks, I'm out and I lose P800 on a P25,000 position.
Reason #3: I've seen this pattern before. Over and over again.

After only a day, I sold almost half of my position because I felt I wasn't comfortable with the P25,000 position so I reduced it to P15,000.

The day after that, I closed my position on this stock at 5.31

I only had 1 reason for selling: I couldn't wait for it.

Bottom line, after these two trades, you would've gotten an idea of my trading mistakes and where I need to focus on and improve.