Embarking on the journey of trading is akin to setting sail on the vast ocean, where the winds of market trends can shift swiftly. To navigate these waters successfully, one must master the art of balancing the sails—knowing when to hold on and when to let go. The key? Minimizing losses and paving the way for those delightful profit-making ventures.
Setting Sail: The Opening Strategy
On a seemingly ordinary day, February 14, 2024, I embarked on a trade with ANET, armed with charts and a dash of optimism. Just like a chef carefully selecting ingredients for a gourmet dish, I chose my entry points with precision.
- Underlying: ANET
- Date: 14 Feb 2024
- Underlying Price: $266.85
- Stop Loss: $255.94
- Profit Target: $320.22
- Market Outlook: Confirmed uptrend
My strategy was not just a shot in the dark but a calculated move, akin to a chess player contemplating their next pivotal move.
The Unexpected Twist: A Sudden Change in Winds
Fast forward to February 20, and the tides had turned. The market, much like a capricious weather system, had its plans:
- Date (Close): 20 Feb 2024
- Price (Close): $255.67
- Market Outlook: Still positive, yet my position was floundering.
Despite the earnings shining brighter than a Broadway marquee, the market’s applause was subdued, a stark reminder of its unpredictable nature.
Navigating Through Storms: Adapting and Learning
In the aftermath, I anchored down to reflect and distill wisdom from the experience.
- What went well? Keeping a vigilant eye on the market’s pulse, is akin to a sailor watching the horizon.
- Room for Improvement: Recognizing that not all glitters in the market are gold.
This voyage taught me a crucial lesson: losses are inevitable, like the occasional storm at sea, but they’re merely stepping stones to future triumphs.
Weathering the Market: Keeping Losses Small
The art of trading is not just about celebrating victories but also about managing defeats. Keeping losses small is like packing a lifejacket; it ensures you stay afloat even when the waves get rough.
The Beacon of Persistence: Staying the Course
Persistence in trading is like navigating by the stars; it provides direction and hope, guiding you through the night until dawn breaks. The market’s volatility is not a deterrent but a challenge, beckoning the brave to persevere.
The Horizon of Opportunity: Embracing Future Wins
Just as the dawn follows the darkest night, the patience and resilience invested in trading will eventually lead to rewarding outcomes. The market, with its ebbs and flows, holds a promise of prosperity for those who dare to ride its waves.
details at a glance
Opening
- Underlying: ANET
- Date: 14 Feb 2024
- Underlying Price: $266.85
- Stop Loss: $255.94
- Profit Target: $320.22
- Market Outlook: Confirmed uptrend
- RS Rating: 95
- RS Line Trend: Up (U)
- Industry Rank: 20 / 197
- Volume U/D Ratio: 1.2
- Position Risk, %: 4.07%
- Position Risk to NL, %: 0.50%
- Potential Profit (Position), %: 19.93%
- Risk to Reward Ratio: 0.20
- Position Size, %: 12.27%
- Why did I open this trade at that point?”: Strong CAN SLIM stock at EMA 21. Price bounced up after a down day.
- Was it an ideal buy?: No. The price was not in the base.
Closing
- Date (Close): 20 Feb 2024
- Price (Close): $255.67
- Market Outlook: Confirmed uptrend
- RS Rating: 94
- RS Change: -1
- Remarks: The company reported its earnings two days earlier. Earnings growth was good, but the market reacted poorly, and I was stopped. When buying an obvious stock, it is not an investment but more like a gamble.
Results
- What went well?: The main thing I did well was that I kept the stock on the radar.
- Cause of Error / IMPROVE: For now, ANET is a gamble – it’s obvious to anyone who pays attention to it.
- Lessons Learned: When buying a good stock with good earnings but the price has gone up for a long time, some investors want to get out, and a good earnings report might cause a bad reaction from the market. The market can be volatile for several days.
- Position ROI, %: -4.92%
- Position ROI (Portfolio), %: -0.60%
- Position Open Time (Trading Days): 3
- Position Open Time (Days): 6
In Conclusion: Charting Your Course
Trading is a journey of a thousand miles, beginning with a single step, and each step, whether forward or backward, is a part of the grand adventure. So, hoist your sails, set your course, and embark on the thrilling quest for profitable trades, where each loss is a lesson and every win a celebration. Here’s to the journey ahead—may it be filled with insight, growth, and plentiful gains!
