• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Always Be Learning: Exiting Too Soon On A Losing Position
Stock

Always Be Learning: Exiting Too Soon On A Losing Position

by January 27, 2023
by January 27, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

It has been a successful month on many fronts as we started buying aggressively on January 9th. But I made some strategic errors that were really costly. There is always another train at the station, so learning to not make these mistakes again is the only value in a losing trade. I think it is good to share, as the market always keeps us humble. Learning from my mistakes is a constantly evolving process. This week was only one week in a lifetime, but it’s hard to adjust in real time.

My analysis of the big run starting in early January was very accurate, and once I had positions on, I just needed to wait.

Here are two examples of stopping myself out literally on the lows of the day.

Tesla

The first is Tesla. This is a Canadian ADR to trade Tesla in Canadian dollars. Chart shape is almost the same as the US chart.

Day 1: I bought Tesla at the black arrows. It closed below my entry, a small loss.

Day 2: I was in a loss position most of the day, as the other stocks I bought on Monday trades started to work.

Day 3: Tesla pushed higher and made a doji.

Day 4: Thursday opened higher, tested lower, but closed near the open.

Friday, Tesla announced price cuts, the stock dropped 4% on the open, and I was back in a loss position again, while other stocks were screaming higher. They announced they were cutting prices on their cars. My impatience wore thin. I sold Tesla within 2 cents of the low on the day and the stock rocketed higher.

A tough trade as the stock is now up 50% from my entry. I can only blame myself, but it was a difficult trade to watch for the last two weeks.

AMD – Advanced Micro Devices

The second trade I took after I sold Tesla was AMD.

Day 1: I bought it on the following Monday, as the stock made a new high, and the stock closed flat on my entry.

Day 2 was an outside bar, and price closed back in the middle of the range.

Day 3 the stock tested higher, closed lower on the lows of the day.

Day 4, the stock gapped down to start the day, I was down 6%, I sold at the red arrows at the low of the day.

Meanwhile other trades I had were racing higher. Tough looking in the rear view mirror, but trading yesterday’s chart is always more informative when you know the outcome.

Lessons learned:

TSLA: I had no reason to exit, other than I was tired of watching the stock sit in the red as other trades were racing higher. How much time is enough? Good question, one week? As the market went higher, I expected a big name stock to move. Patience.

AMD: The stock hit my stop loss, even as all my indicators were telling me to be long this market. NVDA was shooting higher, and I was losing money in AMD. I sold on the 4-day low. When you use stops, you are going to get kicked out of good trades. That’s just a fact. It stung that it was the second trade to go negative early in the rally. I would like to think it was discipline, but I need to be more forgiving as an uptrend is starting as the volatility is still high.

One positive: The strength indexes we use at ospreystrategic.org helpe me be long the market in a timely fashion.

Unfortunately, my management of the trades could have been better in both cases if I had another day of patience. I don’t use hard stops, as I have been whipsawed like the folks that had the wild swings on the NYSE recently.

There is always another train, and I am moving on. But the sting of missing the big swing, ouch.

Hopefully, this lesson can help a few others, but there are two more for my notebook. I have more lessons since those trades as well. The market will always keep us humble at some point.

You Might Also Like
  • Homebuilding Rebound: How to Catch the Trend Early On
  • The Best Five Sectors, #12
  • Plenty of Strength in HY Bond A-D Line
  • Small-Caps Get on Board!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Gold’s Price Oscillator
next post
MEM TV: Growth Stocks Push Market Above Resistance

You may also like

BULLISH on These Options Trade Ideas

February 3, 2025

Sector Spotlight: Three Takeaways from Seasonal Sector Rotation

August 29, 2023

Crucial Insights: How Rising Rates IMPACT You!

September 8, 2023

The S&P 500 Snapped Back Hard: Now What?

May 14, 2025

Oil & Gas Equipment & Services ETF Resumes its Uptrend

March 15, 2024

The SPY Knocks on the Door of Resistance

January 29, 2023

A Supercharged Stock Market Rally: Catch These Stocks Before They...

November 14, 2023

Small Caps & Value Sectors are Booming (For Now)

July 16, 2024

Buy the Dips!

July 8, 2023

Red Flags Raised by Bearish Engulfing Patterns

July 6, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Skepticism Over the OPEC + Oil...

    December 1, 2023

    Five Stocks Showing Strength in a...

    March 13, 2025

    Complete Trader: Macro to Micro and...

    June 24, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here