I had small gains and losses trading $VITA this week and finally today, I got whipped. I thought the reward wasn’t worth the risk (I’d like to have at least 1:2) hence, I did not execute another trade for this stock. This is as normal as a storm visiting our country, it is going to happen every now and then. I can’t stress the importance of taking small losses since it will save you from major drawdowns and opportunity costs. I guess I need to wait for the next best set-up to trade for this one.
I was trailing this stock that kept on free falling until I saw it was closing in on my buy point. I put my initial tranche and scattered bids across the board. Only 3 bids were hit the rest were too low to get served. I wasn’t able to buy my next tranche at a higher price since I wasn’t keen enough to react when it reached the level and there were liquidity issues. It might be a +20%++ gain (I sold 11.20 and below) but it was just a low volume trade. I did not chase to buy when it was rallying since it wasn’t in my plan to do so.
I’m still thankful that the week didn’t end negative but performance could have been better if I was more alert. 🙂
Time to reset this weekend!