Wednesday, August 4, 2010

I broke my rule and it cost me!

I did not plan to trade IDSA today. I had plans to trade only two stocks: BP and INFN. On impulse, I decided to take a trade in IDSA because I felt it would run up in the morning. Rule broken: DO NOT TAKE A TRADE YOU DID NOT PLAN THE NIGHT BEFORE!!! I got burnt big time.

I was anticipating that IDSA could either sell off or run up. I decided to get long at $21.20 but did not put in my stop loss @ $20.40 as planned. Tried to get out with a limit order @$20.50. Got over ran by the morning panic then had to exit at the market; got filled at $19.14 for a quick and painful loss of about $220.00. I cannot believe this! My indecision and lack of planning cost me a $200.00+ loss.

Sigh!!!!

When will I learn no to take impulsive trades?!!!

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