Trying to make the transition from trading as a hobby to trading for income.
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Monday, August 22, 2011
Raised lot sizes too big and got hammered. -300% of daily loss. Didn't honor quiting the day when -100% stop target is hit.
AMZN great initial short that took off prematurely (still fighting that) and then tried a long with too much size...was right but tighter stop caused a loss.
NFLX Took initial loss, then tried again and took gains too quick trying to catch counter rallies and got spanked.
LESSON OF THE DAY: KEEP SIZE COMFORTABLE SO TRADES CAN BREATHE. RISK MANAGEMENT WITH SMALL-MID SIZE LOT SIZES ALLOWS ROOM TO MOVE SO IF WRONG, STOPPED OUT BUT IF RIGHT CAN MOVE. WHEN TAKE TOO BIG POSITIONS, STOCKS CANNOT BREATHE SO EVEN IF RIGHT ENTRY, GET HIT!