Learned a lesson today
I decided to start day trading last week starting with $450 I was only making one trade a day and was able to be profitable for five consecutive days bringing the account to a modest $480, not much I know, but I was beyond ecstatic to make a $30 profit from trading. I’m just using a small account right now to figure out what the hell im doing haha
Anyways the success from last week made me completely over confident, I thought I knew what I was doing lol
Anyways after I entered the trade this morning, I immediately watched the price shoot down towards my stop loss.
I just didn’t want to accept that I was wrong and I moved my stop lower, in the hope it would rebound and shoot to the moon.
Then the price shot down again.
Then I lowered my stop loss again
Then it shot down again
Then I lowered my stop loss again
Then it shot down again
I lowered my stop loss again
Repeat this process about 5 more times until I finally take the loss.
This whole process wiped out all my profit from last week and then some.
I’m not mad though this really taught me about how serious risk management is, and I’m glad I didn’t do this with a substantial amount of money 😅 let’s see how the rest of the week goes!