The stock you recently traded is going up. To buy or not to buy? Read this article and you will never be confused again!
Just when you think you’ve found solid ground, the earth moves beneath you, and your walls come tumbling down. This tale of my recent foray into the market underscores that unpredictability is the only predictable element in investment, and why emotional detachment is crucial in this game.
The Dawn of Hope
Spotting the Golden Goose
On a day bursting with promise, I stumbled upon what seemed like the elusive Golden Goose. With its feathers shining in the financial sunlight and its stride confident against the backdrop of market indicators, this stock was a beacon of potential gain. I had traded the stock and the price alert signaled that its price was appreciating again.
- Launch Date: 6 Mar 2024
- Launch Pad Price: $59.40
- Safety Net: $57.91
- Peak of Ambition: $71.28
Armed with charts and figures, my spirit soared. I was ready to ride the Goose to the land of lucrative returns.
Setting Sail on Optimism’s Tide
Fuelled by visions of triumph, I embarked on this journey with a heart full of hope and a strategy that seemed foolproof. The Goose’s leap off the crucial marker, backed by thunderous market applause, was like a siren’s call, promising riches beyond measure.
The Turn: Reality’s Cold Splash
The Unraveling
But as any seasoned adventurer knows, the path to treasure is never without its traps. The Golden Goose, much like Icarus, flew too close to the sun. Its descent was as swift as it was unexpected, turning dreams of prosperity into dust.
- Date of Descent: 6 Mar 2024
- Touchdown Price: $57.82
As I watched my plans disintegrate, the market’s fickleness was once again laid bare. The realization that stability is but an illusion in this world was a lesson learned the hard way.
The Mirror of Reflection: Lessons in the Haze
In the aftermath, as I pieced together the fragments of my venture, the reflections offered bitter yet invaluable lessons:
- The Illusion of Control: “I bought the stock back after a strong price appreciation. I placed a tight stop-loss and stayed disciplined.” The market, however, cares little for human discipline or desire.
- Chasing Shadows: My attempt to re-enter was a leap towards shadows, grasping at what was already gone. The market’s pace is relentless, leaving no room for second guesses.
details at a glance
Opening
- Underlying: BHVN
- Date of trade opening: 6 Mar 2024
- Underlying Price at trade opening: $59.40
- Stop Loss: $57.91
- Profit Target: $71.28
- Market Outlook at trade opening: Confirmed uptrend
- RS Rating: 99
- RS line trend: Upward (U)
- Industry Rank: 5 out of 197
- Volume U/D Ratio: 1.3
- Institutional Ownership Trend: Upward (U)
- Position risk, %: 2.49%
- Position Risk to NL, %: 0.14%
- Potential Profit (position), %: 19.83%
- Risk to Reward Ratio: 0.13
- Position size, %: 5.46%
- Reason for opening the trade: I bought the stock back because it bounced up from EMA 21 with a very strong volume.
- Was it an ideal buy? No. The price was out of the buy zone.
- Remarks at trade opening: I placed the stop-loss tight.
Closing
- Date of trade closing: 6 Mar 2024. The market made its own decisions and decided to stop me out almost immediately.
- Closing Price: $57.82
- Market Outlook at trade closing: Confirmed uptrend
- RS Rating at trade closing: 99
- RS Change: 0
- Remarks at trade closing: Got stopped out. Initially, I decided not to deal with this stock again. However, I aim to stay objective. The specific securities are not as important as the profit I make.
Results
- What went well? “I bought the stock back after a strong price appreciation. I placed a tight stop-loss and stayed disciplined.”
- Cause of Error / Improvement: When bought back, the stock was extended.
- Lessons Learned: Even good stock may get volatile. This doesn’t mean we should excuse them. Stop-losses should be tight, and if we get shaken out, so be it.
- Position ROI, %: -4.31%
- Position ROI (portfolio), %: -0.24%
- Position Open Time (trading days): 0
- Position Open Time (days): 0
The Epilogue: Wisdom from the Wreckage
Embracing the Storm
This journey, fraught with upheaval, taught me that even the most promising ventures can veer into the storm. The Golden Goose’s volatility served as a stark reminder: in the market’s theatre, every player must be prepared for both roles of victor and vanquished.
The Art of Letting Go
- The Insight Unveiled: Even good stock may get volatile. This doesn’t mean we must forgive them. Stop-losses should be tight anyway, and when we get shaken out, so be it.
Moving Forward: Charting a New Course
As the curtains fell on this act, the lessons crystallized into a guiding philosophy for future endeavors:
- Navigating Without Anchors: Like a ship in open water, moving forward requires letting go of anchors that might hold us back, whether they be stocks, strategies, or sentiments.
- The Compass of Discipline: In the vast ocean of the market, discipline and a clear strategy are the compasses that guide us through storms and calm alike.
takeaway
The investment journey is a testament to the human spirit’s resilience and the relentless quest for growth amidst uncertainty. As we ride the rollercoaster of markets, our greatest assets are the lessons learned from each dip and rise. Here’s to the wisdom gained, the losses weathered, and the victories yet to come.
