MANNKIND CORP.
YELP & MNKD. Both showed various signals for investors to Buy. Unfortunately that didnt turn out to well for me today as I was down 2R from YELP but up 0.5R with MNKD. Remember your 'R' is the amount of $$ you are willing to risk in a given trade in the case your stock reverses on you. I longed 76 shares of YELP @ 52.90 hoping to release half my position at 2R which in this case was set for 54.20. That's a risk of 0.65 cents per share, which is too massive of a stop loss limit given the circumstance that YELP's high for the day was below 54 in the beginning of the trading hour.
On a more positive note I managed to pull in 1R from MNKD longing 500 shares @ 7.36 and covering all my position @ 7.44. The reason I had to cover my whole position was because I wasn't aware that MNKD was scheduled to release its quarterly earnings today and so I did not want to risk losing if MNKD reported a loss.
As you can see clearly I was not prepared enough for this trading day given the fact that I spent all weekend educating myself and observing different stocks to potentially trade. One big mistake I made today was that I did not follow my RULES. In fact I broke the same rule 3 times in one day. Note to self, never exceed your 'R' amount for the day. This can be extremely hard to do especially if your at a loss around 10:30 am and have the urge to regain some position, but nonetheless if you want to become a successful trader you must always FOLLOW YOUR RULES!.
1. Two other things I want to work on is ensure that I'm observing a losing stock in the case there is a gap and my stop limit is missed.
2. I want to reduce my 'R' to 15
3. Don't play stocks whose earnings release is scheduled within a 3 day time span at the very least.
"these are just my opinions and not a buy or sell recommendation. i hold no position in this company nor are they paying me to post this".
Advice on becoming profitable:
ReplyDelete1) Don't chase the money
2) Keep a detailed log of all trade
3) Do not ALLOW big losers to happen
3.1) No loser should be greater than 1R
3.2) If you lose 1R on a trade that only means you followed your plan, you are RIGHT on 100% of the trades because your plan told you to CUT it and not continue!
4) Losers need to be smaller than winners, no big losers! wake up and repeat everyday, NO BIG LOSERS! NO BIG LOSERS! NO BIG LOSERS!