introduction

Welcome to the rollercoaster world of stock trading, where every decision can lead you to a pot of gold or a tumble down the rabbit hole. In the spirit of camaraderie and a bit of self-mockery, let’s embark on a narrative journey — a tale that unfolds in the bustling arena of the stock market, featuring a daring trade with TNC that taught more lessons than any textbook could.

The Prelude: Setting the Stage for Adventure

In the heart of winter, on December 20, 2023, our story begins. With the anticipation of a kid on Christmas morning, the decision was made to dive into the market with TNC as the chosen chariot, priced at a hopeful $92.34. This wasn’t just a trade; it was a leap of faith, armed with a strategy and dreams of grandeur.

The Protagonist Emerges: TNC Takes Center Stage

• Underlying: TNC
• Date of Entry: December 20, 2023
• Launch Price: $92.34

Weaving the Safety Net

Like any good adventurer, setting up a safety mechanism was crucial. A stop loss at $82.12 and a profit target at $118.12 were the buoys to keep this ship from drifting into the storm.

The Market’s Whisper

The market was in a confirmed uptrend, and with an RS Rating of 89, it felt like the stars were aligning. This was it, the moment to shine.

Risk Calculations: The Engineer’s Approach

Despite the excitement, a calculated approach determined the risk at 11.01% and the stake at 8.28%. It was a calculated gamble in the vast casino of the stock market. For me, it’s quite unusual to take such a risk for one trade.

The Leap of Faith

Driven by the allure of a strong stock breaking out of its base during an uptrend, the trade was initiated. But was this move as foolproof as it seemed?

The Action: Plunging Into the Deep

The quest for glory had a hiccup — the ideal buy moment might have been missed, revealing the first crack in our armor. The price was a bit stretched, indicating perhaps the timing wasn’t as perfect as anticipated.

The Twist: Encountering the Storm

As the calendar flipped to January 4, 2024, a stark reality set in. TNC’s price had dwindled to $88.13, and the once favorable market outlook and RS Rating had shown the first signs of weakness. The dream was facing a harsh test.

The Market’s Retort

The stock’s swift decline was a cold splash of reality. The significant loss in a brief period was a tough pill to swallow, highlighting the unpredictable nature of the market.

The Reflection: Learning From the Misstep

Yet, in this setback lay a silver lining. The timing of the entry, synchronized with a surge in volume, was a fleeting victory. It showcased the potential for success, albeit overshadowed by the subsequent downturn.

Off the Beaten Path

The journey was marred by a classic case of FOMO, the fear of missing out, leading to a decision that was more emotional than strategic. The volatility that once seemed like an opportunity had become a cautionary tale.

Lessons From the Front Lines: Wisdom Gained

This adventure, though not yielding the expected treasures, was rich in lessons. The allure of quick gains, much like the sirens of lore, proved to be misleading. A disciplined approach, focusing on timing, precision, and adherence to a well-thought-out strategy, emerged as the true path to success.

details at a glance

opening

• Underlying: TNC
• Date: December 20, 2023
• Underlying Price: $92.34
• Stop Loss: $82.12
• Profit Target: $118.12
• Market Outlook: Confirmed uptrend
• RS Rating: 89
• Position Risk, %: 11.01%
• Position Risk to NL, %: 0.91%
• Potential Profit (Position), %: 27.77%
• Risk to Reward Ratio: 0.40
• Position Size, %: 8.28%
• Why Did I Open This Trade at That Point? The stock was strong, breaking out of a base during an uptrend.
• Was It an Ideal Buy? No. The price was somewhat extended.

closing

• Date (Close): January 4, 2024
• Price (Close): $88.13
• Market Outlook: Confirmed uptrend
• RS Rating: 87
• RS Change: -2
• Remarks: Experienced a significant loss in a short period after several days of decline.
• What Went Well? I purchased the stock as it showed a large volume and its price was accelerating. I closed the stock higher than a stop-loss.
• Cause of Error / Improvement: At the time of purchase, I was aware the stock was extended, which I should have avoided. The base had significant price swings. Had I bought at the correct time, the trade could have been at breakeven, allowing for a minimal loss or a small profit upon stopping out.
• Lessons Learned: This purchase could be classified as a result of FOMO (Fear Of Missing Out), showcasing that such buys are usually not successful. Volatile stocks are challenging to maintain.
• Position ROI, %: -5.61%
• Position ROI (Portfolio), %: -0.46%
• Position Open Time (Trading Days): 9 days
• Position Open Time (Days): 15 days

The Epilogue: With Hindsight’s Clarity

The trade concluded with a position ROI of -5.61%, a modest dent in the portfolio, but a significant addition to the treasure trove of experience. Over 15 days, this journey through the highs and lows of the stock market was a profound learning experience.

Reflecting on this escapade, the blend of ambition, misjudgment, and the ensuing enlightenment underscores a timeless truth: the stock market is a formidable opponent, yet it offers invaluable lessons at every turn. As we navigate through its tumultuous waters, let’s arm ourselves with knowledge, tempered by our experiences and a healthy dose of humor.

In Retrospect: Charting the Path Forward

This narrative, rich with ambition and the inevitable pitfalls of trading, serves as a reminder of the stock market’s unpredictability. Armed with new wisdom and a resolve strengthened by experience, we march forward. May this journey inspire us to approach each trade with caution, curiosity, and an ever-present sense of humor, ready to embrace the lessons and opportunities that lie ahead.