Journal 004: Learn the hard way -- NOW

Momentum trade - Intraday
Stock: NOW
Entry: 2.7
Exit: 2.6
Result: Loss

As I mentioned in my previous post, I tried intraday again. The same trigger---greed. This time, I was stopped out.

They said that experience is the best teacher--indeed it is. I promised not to do it again because as I learned previously that intraday doesn't suit me as it drives all the emotions from me.

Well, the lesson learned last time doesn't bite me because I won that particular trade. This time, I lost. So, promise, I will not do it again. No intraday. Hindi ko kaya ang nag uumapaw na emotion dito.

So EOD daw nararapat para sa akin. Let me try to do that. Anyway, here' what happened with NOW.

The same story, NOW ticker was popping in yellow color. Greed sits in. Enter the trade, not knowing it was the peak. After I entered, the price went down. Boom! Hit my stop loss. I sold it at 5% loss. 1.25% loss total Port in less than 60 mins.

Takeaways:

The bad.

1. Should follow the takeaways mentioned previously.
2. Avoid entering a trade without the risk/reward ratio assessment. Reward should be higher than risk.  
3. Wag na kasi sa intraday.

The good.

1. Ayaw na talaga intraday. Aralin ang EOD.
2. I can say that cutting losses is now natural to me. No questions ask pag na hit ang SL tira na agad and move on.
3. I bought more books to study more on technical analysis, chart patterns, and setup. 
4. I religiously review stock now based on the eight criteria and look for EOD suitable stocks.

I have already two more stocks under my position, which I feel comfortable dealing with. I just look at the end of the trading day and see what happens to the stock price. Although in the middle, I need to check if the stock price got near my stop loss. If the price is moving up, I just look at the closing price later during the day. These two stocks have no DNA of gapping down and not very volatile.

So, I think these type of stocks suits for EOD, what I'm monitoring now is the time frame. For how long it will go up. Is it worth the wait? Or do I need to sell and look for another opportunity? Anyway, I will post here after I exit each trade. My journal, of course, is from hindsight. No live feed here. 

So far the general market is down, so, I don't want to trade nowadays. I will wait till the general market moves up. Just monitoring these two stocks I mentioned earlier. BTW, I came back from vacation and is now back to work. So, I need to check how my trading jives my day job.

I will utilize this time to read more books. Here are my new collections. I will tell you more about these books after I finished reading them.