My stop loss kicked my out from the market yesterday. My moving average screening rule filtered out 7 stocks market picks 2 days ago and 1 stock market picks yesterday. I initiated 3 opened positions, they were HCC, NMX 2 days ago and DLB yesterday.
I put my stop loss at 22.71 and HCC advanced higher yesterday as there was some good news pushing the overall US market upwards. HCC broke the 22.71 resistance formed few days ago but it is also immediately facing a strong resistance at 100d MA.
What do I learn from this trade?
You can see that HCC on a down trend and it has also been resisted at the 100d MA 2 times in May & June. That’s was one of the reason that I decided to pick HCC compared to other counters. Plus, it was having a good reward/risk ratio as well. I thought I had high probability of hitting it right to resume the down trend.
Unfortunately, the market kicked me out and proved me wrong. Well, emotionally, I am not happy about it of course. But I need to handle my own emotion. I need to acknowledge that I am wrong in my analysis. I have done my best to minimize my risk by picking a counter with good reward/risk ratio and near 100d MA resistance.
Let’s move on. “It is ok, there is always profit and loss in stock market”. I still have 2 opened positions to make money, at this moment, I need to have faith in my trading plan.
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
