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A mentor told me to stop trading on emotion after I blew $600 in 20 minutes last Thursday
I was up like $400 on a small cap stock I'd been watching for weeks. Then it dipped and I panicked, sold everything. Watched it bounce right back 30 minutes later. My buddy who's been doing this for like 15 years said 'you're reacting to the chart instead of reading it.' He told me to build a simple checklist before any trade - check volume, check moving average, check news. First thing I changed was I set price alerts on my phone so I don't sit there watching every tick. Has anyone else found a specific habit that stopped them from making dumb impulse trades?
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the_fiona5mo ago
Oh cool, so you basically paid $600 for a really expensive lesson in "don't be a panic seller." Bargain pricing compared to what some people lose. Before I automated my alerts I used to stare at charts like they were about to confess their love to me. Spoiler: they never do. My main rule now is that if I wouldn't buy the stock at its current price, I have no business panic selling it either. Your buddy is right about the checklist thing but honestly half of trading is just not being a complete spaz when the red numbers pop up.
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briancampbell5mo ago
Exactly. The trick is having a plan before the red numbers show up, not when you're already freaking out. I set price targets and stop-losses the second I buy something, then walk away. Saves me from myself every time.
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