Wow if farmers don’t know about microbes, no wonder their soil is dead all across the country. Explains why Monsanto is so necessary; then and the farmers have killed every ounce of biodiversity in their fields🤦♂️this post (mine) has nothing to do with investing, just my rant about the ignorance of such a multi-billion dollar industry.
After taking an absolute battering and big drawdowns this month on trades gone wrong on $MP$ZIM$AA$CENX, I thought it was time to take a small trade to find my feet again and build my confidence up.
Saw the $QQQ and $SPY rallying today so took a £8,000 position in $AA hoping it would rally too. It's been pretty battered the last couple of days (tbh weeks) so I thought this could be a nice mean reversion trade off the back of a market rally. Bought in at $69.40 (lololololol) and was looking for a move to $77 in the next couple of days.
Had a tight stop at $68.11 just in case it went badly. Pretty tight stop but it's back to being disciplined and not being a shmuck. I was looking to make about £880 and risking £152.
It did rally initially however, market weakness took over and it ended up hitting my stop. I saw the bearish engulfing candle and sold a bit earlier before it could hit my stop loss so I only took a loss of £-55.
Small loss but this for me is to build up proper discipline. In a declining market period, I need to be comfy taking my losses small and allowing my wins to be big.
Don't think I'll be taking anymore trades today but hope this is a valuable contribution!
So I bought the breakout on $MP at $56.5 but due to market weakness, it faded pretty quickly.
Last month, I made about £15.8k trading and so far this month, I'm down about £-5k or so. But, I don't dwell on the loss, I dwell on how I could have improved the trade.
A few ways I could have improved:
Observed the sector group. Lithium ETF $LIT was in sector decline and has been a stage 4 group for 9 weeks. Therefore, while playing the breakout, I should have had a stop loss in place and taken profits because this is a sector in decline.
Have proper sell rules. I put my hands up, I'm not the best at this. I'm quick to take my profits but patient to hold my losers. This is a game of discipline and frankly, I was not. From now on, my rule is to buy the breakout on the 1H or 2H chart and if the stock breaks the range, then I will sell.
LISTEN TO THE MARKET. I've always said, there are two types of people that make money in the stock market - those that are super smart and those that are super dumb. I am neither and therefore, I must listen to what the market is telling me rather than try act more intelligent than I am.
My goal is still to return 100% of my portfolio this year. As long as I follow the strong sectors, this should be doable.