Learning From Losses | The Gambler

Although the title of this series is "Learn from your LOSSES", this entry is about one of my winning trade. But specifically winning from a bad trade. Why a 'bad' trade you ask?

Read on...

I was following this guru on his social media page and daily vlogs. He gives stock recos on these said daily vlogs. He points out on what levels or area you should buy. He also retracts his recos when the stock has already shoot its price up so that you don't enter at a higher risk.

So I followed some of his recos. One of it was CEI. It made a gap up the day it released its positive earnings report but didn't closed strong forming a red shooting star candle.

I bought the next day at his recommended price. It formed a nice green candle. I entered at 0.220.

The next day it made a gap up again. But sellers dominated the first half of the day only to be overwhelmed by buyers after closing at 0.231.

The next day made a gap up again and it rallied 10% more at 0.260. I was at a 18% gain by this time.

The day after, it went up to as high as 25% gain only to be overwhelmed by sellers in the afternoon and closed at 0.250. I lost a good amount of gain. If I've got better knowledge at this time, I would've sold at this first sign of weakness.

The next day it was a sell off again. Confirming a resistance at 0.260. I sold at 0.242 and was left with less than 10% gain.





You are probably asking why this journal entry is a 'bad trade' although I was able to win a 10% gain.

Apart from taking recos for this trade and entered at a recommended price. I didn't have an exit plan. The guru didn't specifically gave out exit strategies. But we can't blame him. He's just giving free stuffs. It was my trade, my money... my responsibility.

But I didn't have a strategy. It was the guru's strategy. And he didn't gave out the exit plan. The entry wasn't my idea. I didn't have real planning - where to exit. So there was I, floating high at 25% gain and didn't know what to do and when to get out. In just two days Ms. Market wiped out a good chunk of that 25% gain.

Some say that trading is just professional gambling. But someone replied to that with - 'trading only becomes a gamble if you don't have a plan.'

I've read from another person's blog that -

"A bad trade can be a PROFITABLE trade rooted from gut feel and no real planning. Kahit bagger pa yan pero di mo sinunod rules mo, it is a BAD trade."