I lost in this trade, but I traded well. This is the ultimate goal of the trader. "To Trade Well".
How could you trade well then, if you lost?
Well, to trade well is to trade by following your trading plan / strategy. You sink or swim with your trading plan. A good trading plan has a well-define entry and exit signals / parameters. The most important---the strategy, or the plan, or the trading system, or whatever you call it... it must have a risk management plan.
In this case, the CALMA trading strategy has a very clear entry, exit parameters or signal and risk management plan. I simply executed the buy and sell as the signals or parameters appear on the chart. In this case, it appeared where I have to take a loss. Although, it's a loss but it's not a big loss.
There are only five trading results:
1. Small win.
2. Big win.
3. Breakeven.
4. Small loss.
5. Big loss.
You can take the first 4 blindly and it will never hurt your portfolio. But avoid and hate number 5, because this will ruin your trading psychology. And if you avoided the big loss, you will become a profitable trader.
In my first trade, I traded RFM and I wrote about it in detailed the entry or buy signals or parameters, you may click this link to read that one: https://retechson.blogspot.com/2026/07/trade-walkthrough-series-trade1-rfm.html
In this trade walkthrough, I will be walking you through my exit execution.
One of the additional exit strategy of the CALMA is to choose a shorter time frame to exit, when the index is down trend or you are in a bear market, or when the index is down on that day. This is to reduce the amount of risk.
At the time I exited this trade, the PSEI had been showing 3 consecutive bearish candle---long bearish candle and so I adjusted my exit time frame from weekly to daily. The sell signal is once the price closes below alma line. In this case, the last three candles closed below the Alma line.
So why, I did not exit in the first candle?
I was looking for confirmation. Indeed, the second to the last candle did confirm that the price is below the Alma line. But why you did not sell Rey? Well, I give the stock a chance because it closed the same price as the first candle. But the last candle registered the real confirmation as it closes below the previous close. And so, I exited.
I don't care about the result. It could be gain or loss. The important thing is I followed the plan.
And so, I completed my second trade, 28 trades more to go! Of course the next step is to journal.
However, if you look at the above screenshot what did you notice?
I barely escaped. I was not able to enter my bid at the final bid and ask time. That's the time before 9:50 AM. I just got lucky that there were still remaining buyers who bid to buy at the closing price of PHP 103. So, I was able to exit. Otherwise pang apat na candle na below the Alma ang price.
On my previous post, I was excited about a new venture. Yes! about the carwash that was being offered to me to buy by the owner. Well, I did my own due diligence and it happened that I found some red flags that I will hinder me from trouble shooting this carwash business from losing to turn it around and be profitable again.
The problem is the that the owner had no financial statements to show to me. So, without me actually operating and taking over the business, then only I will come to know if the numbers the owner verbally told me will add up.
The second thing is that he has very high operating expense. Higher than my vulcanizing shop. He has higher rent, water bill and electricity bill. Although there's no payroll expense as it is vendo and DIY business model.
The third reason, why I back out is because of the strong presence of a competitor located just few meters away from the subject carwash.
So, this things I learned when you become an insider investor. You will be able to spot a good investment or business or a bad investment or business of others.
In my next trade walkthrough episode, we will talk about what is an insider investor.
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