Don’t Get Mad, Get Trading!
On Tuesday, July 30th, I prepared for my day by
watching Kevin Haggerty’s video on opening reversals. I had been
watching OSI Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating) for a couple of days, and it had
reversed on more than one occasion. I was so enthralled by the way that it
opened, went down the complimentary two bars,then reversed. IÂ followed the
third bar to see if it would take out the high of the previous bar. It didn’t
quite take it out, so I took my eye off the screen for just a second. The fourth
bar, again, did not take out the previous bar. So, I made the mistake of
scanning some other picks, only to go back to OSIP, and found that the fifth bar
WAS the entry bar.
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I was so enamored by the way that the stock did exactly what Kevin Haggerty
had said it would do, I sat and watched it climb over 4 points without ever
placing an entry. After the best preparation, I failed to execute on what turned
out to be a very profitable trade, simply because I lost my concentration for
just an instant. Lesson learned –just because I missed the first entry, I
should not get mad at myself and miss multiple additional entries, thereby
compounding my frustrations.
Editor’s Note: I think Dennis
makes a very salient point here that every new trader, and even some experienced
ones can learn from. Don’t get so steamed over missing a setup. Often times
throughout the day you will have more than one chance for a stock to set up.
Don’t chase the missed entry, but don’t stop observing the stock for a new
setup. There was a reason you were following it, stick with it.