After coming across the blog of one of the best traders in Philippines, master "zeefreaks". I wanted to adopt his method to my trading. So I modified my technical indicators to the following: SMA 20, SMA 50, SMA 100, SMA 150, MACD.
I was screening for stocks that broke out of it's previous resistance or near their resistance level and I watched several stocks. One of this stock is $RWM, who broke its resistance last October 2, 2017. The next day my entry strategy is that the price must open higher that the closing of the previous day (4.20) to confirm the breakout. The same really happened and I entered the trade by buying 1000 shares at 4.33. However, the odds were not in my favor when on the same date, $RWM closed at 4.05.
Because I'm too emotional to exit the trade, I held to my position and waited for it to rise. Luckily, my opportunity came last October 11, 2017, $RWM's price ranged from 4.18-4.46. I could have exited the trade but I was optimistic that the next day the price would go up. I prepared my trading strategy the next day. My target price was 4.80 and my cut loss price is 4.39. However, I was too emotional to admit that I was wrong that I did not cut my losses despite the price dropping to my cut loss level.
Now, I am stuck at -7.73% and is still very emotional to cut my losses. I realized how important it is to live to your strategy faithfully, despite negative effect. In order to protect us from losing more, cutloss price is there to end it. Unfortunately I was unable to exit today from the trade because I was in court the whole day. Hopefully, monday would give me a better opportunity in the market.
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