When i reviewed my trades of the last 6 weeks again i was really surprised to see,that i had the best performance in stocks that i only traded 1 time per day. Not the dollar amount,but in win/loss ratio. When i replayed some of those trades in my head i realized that i traded some stocks too often,because i initially made a good trade in them. That led me to believe that i could repeat those winning trades easily as long as those particular stocks were in uptrends. One of those stocks was SOL. I began trading it when it was around 8$ and on my first trade i made about 5%. The next day i traded SOL again and had another good trade.
Because in both cases the stock did exactly the same thing,i thought i could predict the stock’s movement now. It gapped higher, filled the gap and as soon as it got above the opening price it moved quickly about 20 or 30 cent up without looking back. I thought i had found an easy way to make me a lot of money by just trading SOL up to 12$. But of course it didn’t trade the same way every day after that and i lost almost all of my previous gains in it before i stepped back and asked myself what the hell i was doing wrong (because the stock continued to go up,but in a different way than i had anticipated).
The anticipation of higher prices combined with a few good trades in SOL made me forget about my usual trading rules and make “cheat entries” or other stupid mistakes. Instead of letting the market tell me what to do, i tried to impose my will on the market and that always ends bad. Now when i look at the chart of SOL i don’t think of the first few good trades,but of how i gave it all back by breaking my rules.