IRC | Sell with Dignity

Round 3

I think this time around, I was in the middle of reading someone's blog, have started watching and following another one's youtube videos. So somehow I already have basic knowledge about how they do their trades.Take note, BASIC knowledge. And I now also have a grasp of the basics terms like buy on support, sell on resistance. Buy on breakouts. Buy low, sell high. Bounce plays. Swing. Trend following. Momentum. Price. Volume. and others.

Day 0.
It was, as I saw as a newbie, a bounce play setup. The harder the fall, the greater the bounce they say. I plotted the Fibo and set my entry, cut and target prices.

Entry at 2.18-2.20 (Fibo 61.80%)

Cut Loss at 2.15 (few flucs below Fibo 61.80%)

Target Price at 2.80 (😁 hyped e, to the moon daw ang subway na 'to)

Day 1.
Came next day. After just 3 trading days from selling my last position. I bought IRC again. But not right away. It opened at 2.16. Then it started going up. People are buying. My laptop kept on beeping for every trade done for this stock.

(I'm not trying to sing a Juan dela Cruz's song here. The 'beep' is the sound PSE Tools make when a trade is done on the current stock on your screen)

♪ Beep. Beep-beep. Beep. 2.17. Yes! Malapit na sa entry ko.

♪ Beep. 2.18. Yes. Ayan na. Entry ko na to.

♪ Beep-beep. Beep. 2.19. Within range pa ng entry.

♪ Beep. Beep-beep. Beep. 2.20. Buy na ba ako?

♪ Beep. Beep. Beep. 2.21. Buy ko pa ba?

♪ Beep. 2.22... 2.23... ... ... 2.25... Ang layo na sa entry ko ah...


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I was frozen.


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I just stared at my screen while the green candle grew longer and longer.

♪ Beep. Beep-beep. Beep.

Every beep was a trader hitting their conviction buy/sell button. I had it planned and plotted but for some reason I didn't hit my buy button.

There's a difference between knowing what to do and actually doing it. Turned out that I didn't have the confidence to execute my plan. I started to doubt myself. I started doubting my plan. Was I even plotting my Fibo right? Was my bounce point at the right levels?

Moments passed.

Recessed was over and there went the beeps again. I watched again as price went up. FOMO is real. The market was nearing to close when I decided and thought...

F*** the plan. I want in.

I bought my first tranche EOD. Candle closed at 2.31.

Day 2-5.
Series of smaller candles. Price went below my entry price at Day 5. Didn't cut. Why? 'Cause I don't have a plan. No cut loss.

F*** the plan.

Day 6.
This was the day after the Swiss Challenge lapse. And there were no news nor confirmation of other contenders for the bid. Price went as low as 2.00. Bought more at 2.15.

Day 7-15.
Price went as high as 2.69 with a false breakout. I think, by this time, I already sold all other positions in my port except this one. The positions I sold are losing big time so I decided to cut them. Which leaves IRC my sole position in my port.

Somewhere in between these days. Some guy uploaded a call recording between the guy and an IRC receptionist (?) where the guy asked about the swiss challenge and the receptionist confirmed that the project was already a 'done deal'.

Day 16.
Red candle. Since I sold my other positions, I got more BP. Bought more at 2.36.

F*** the plan.

Day 17.
Went as low as 2.20. Bought more at 2.32. Price went back up and closed at 2.39.

Day 17.5
I was lucky enough to be given a slot on one of someone's webinars. They talked about Trading Psychology and Trend Following. One key take-aways from this webinar was the use of Trail Stop. Yeah, I know. I know. Trail Stop is basic and you can read about it in every basic trading books and reading materials you can get. But the thing is, newbies know it, but they never or rarely use it.

Day 18-21.
Series of descending small red candles. I figured 2.20 was a established support by that time. So I lazily put my GTC order at 2.25 and 2.20 to average my AEP lower. Those were my last tranches and both got hit. I was at a 2-digit loss with today's current price. Port allocation is at almost 50%.

Day 22.
Price bounced and closed at 2.30. My AEP was at 2.27. I was break even now.

Day 23.
News came out that IRC is 'expecting' to bag the project. Price rallied and closed strong at 2.58. HODL. Price is above 20MA this time. And applying the trail stop lesson that someone shared with us during the webinar, I set my trail stop at the break of 20MA.

Wait. Did I just had a plan?!

Stick with the plan.

Day 24.
IRC released a first disclosure in the morning confirming the news and disclosed that they've received the Notice of Award for the project. Price broke out of my darvas box and went as high as 2.74. Went back to 2.66. Then trading was suspended a couple of hours after open. Forced to HODL.

Stick with the plan.

IRC suspension was lifted after 2 days.

(Day 25 Pre-market open)

Went to Big Bad Wolf Dubai to find some self-help and trading books from 1am to 4am.

Day 25.
Suspension was lifted. I was still in Dubai. Just came from the book sale at 5AM. Stayed at my mate's house for the market opening. Can't risk missing the opening while commuting back to Abu Dhabi. It was a sell-on-news at the open. Dipped as low as 2.44 before it stabilized at 2.60-ish just before recess. I decided to make my commute back to Abu Dhabi now since the price has stabilzed. 20MA wasn't broken yet.

Stick with the plan.

After recess. Price rallied as high as 2.97 breaking its 52 week high price of 2.80 only to close back down at 2.85.

It was already showing weakness with the day's long upper wick. But I HODL.

Day 26.
Opened higher than previous but closed lower at 2.80. Red candle. Resistance turned support.

Day 27.
Opened even higher than yesterday. But still people are selling. By now price went back below the previous darvas resistance and more importantly it was nearing my stop. I thought of selling. But someone told me to...

Stick with the plan.

Day 28.
Another red candle. Priced almost kissing my stop. The thought of selling grows stronger. But I have to.. stick with the plan.

Day 29.
I noticed that MACQ was selling. 20MA was at 2.48.

♪ Beep. Beep-beep. Beep. 2.52. Yare, buhosan na to. I readied my COL account.

♪ Beep-beep. Beep. 2.50. Filled in my sell order. Sell all. Left the price blank

♪ Beep. Beep-beep. Beep. 2.48. 20MA was hit. I input 2.46 as my sell price.

♪ Beep. Beep. Beep. 2.47. Put in my password confirmation.

♪ Beep. 2.48... 2.47.. ... ... 2.46...

and there at that moment, I hit my sell button.


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Then there was silence.

It was a weird feeling. I've lost a good amount of gain. But for the first time, I was able to execute a trade plan. I stuck with the plan. Although I started the trade with no direction. At least I finished following one.

I trusted the process.

Yep. you probably noticed from the chart. I was whipsawed. I could've sold at EOD. I could've HODL.

I could've...

but I didn't.

Because that's not the plan. I don't have a way of knowing that it will close higher with a green candle. It could've dived lower after I've sold. Walang may alam. That's why you have your plan. Your plan is there to protect you. To protect your gains and preserve your capital. The rules for this trade were just simple.

I set my stop.

My stop was hit.

I sold.

It preserved (some) of my gains and also protected my capital. Goal achieved.

They say trading is just simple and I agree. You just set your rules and you just have to follow them. Yes, trading is simple. But it is sure hell not easy. It takes a lot confidence and conviction to follow those rules you set. Especially for newbies. The first cut is always the hardest.

Buying is easy. Selling is the harder part. It is either you are in a situation where you don't wanna sell yet because you're feeling greedy and want more gains or you're at a loss and you are hoping price will go back up. You had the confidence to buy it. You must have the confidence to sell it regardless of the situation. If your stop is hit. Just sell. You'll thank yourself for it later.

As someone put it -

"For everyone can buy with confidence. But only a few can sell with dignity."