Learned From Our Mistake On $SNAP | $500 Account Challenge Day 25

The $500 account challenge got a reality check this week! We faced the seductive allure of a risky $UBER options trade, a personal YOLO weakness. This "get rich quick" urge after a $SNAP misstep was a clear sign of emotional trading. Luckily, self-awareness is key in our trading strategy. By recognizing the YOLO itch, we took the "medicine" – shutting down Webull and prioritizing a cool head. This close call reinforces the importance of sticking to the plan and avoiding emotional decisions in the market! Stay tuned to see how we navigate the emotional rollercoaster and make calculated trades.

July 1, 2024
Meta Matt

Day 1 : Building a Watchlist and explaining the strategy Jo
Day 2 : $PLTR Trade Idea 
Day 3: Buying $HOOD
Day 4: Up 5% on $HOOD
Day 5: Entered $UA Trade

Day 6: Trading In Puerto Rico
Day 7: Introducing Beacon
Day 8: S&P 500 Record Highs
Day 9: Robinhood Makes Moves Into Crypto
Day 10: Roaring Kitty Meows

Day 11: $GME Trade Idea
Day 12: $NIO Trade Entry
Day 13: Taking Profits In $HOOD
Day 14: Stopping Out Of $UA
Day 15: Stopping Out Of Everything

Day 16: No FOMO
Day 17: 6 New Trade Ideas
Day 18: Entering $ACB Trade
Day 19: DXY Tells Us To Stay Out Of The Market
Day 20: "Shoulda, Coulda Woulda"

Day 21: $CCL Hits Target 1
Day 22: Trading Psychology Book Club Week 1|
Day 23: $NKE Earnings Play
Day 24: Adding Day Trades To Our Watchlist
Bonus: Using TraderSync To Track My Trades For This Account

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Learned A Lesson On $SNAP

This week's $500 account challenge update comes with a dose of real talk – a cautionary tale about the dangers of emotional trading. I know what you might be thinking - "Wait, a 'Trading Influencer' is about to talk about a loss"? Yeah we do that here at PB Alerts, losing is part of trading and nothing to be ashamed of!!

The $SNAP Slip-Up: We entered a $SNAP position on Friday. Feeling confident, I neglected to set a stop-loss order this morning during my busy Monday morning routine, mistakenly believing the price wouldn't dip low enough to hit my stop loss before I got aroudn to it... Wrong! The market had other plans, and $SNAP plummeted, exceeding my intended stop-loss, and leaving me down $8 (if I had stopped out where I wanted to I would only be down $5 on the trade). Luckily, I caught the freefall and exited the trade before it went any lower.

My Stop Loss Would Have Had Me At A $5 Loss Instead Of $8

The good news here is I didn't HODL the stock, hoping that it would come back up. This is a common emotional trigger that happens after a mistake like this, as is Revenge Trading. We had Day Trade levels for $SNAP, but I decided to take this one off of my watchlist for the day, to avoid the possibility of emotionally trading it.

Confessions of a UBERholic: We all have our guilty pleasures, and in the stock market mine happens to be day trading $UBER options. Let's just say it's my personal brand of YOLO. Today, the urge to chase a quick win on $UBER (to makeup for the loss from my mistake with $SNAP) was strong. After the $SNAP mishap, I found myself glued to the $UBER chart, itching to pull the trigger on a day trade.

Taking the Cure: Thankfully, a lightbulb went off! This wasn't a well-thought-out trade based on my strategy; it was pure emotional craving. Recognizing this as a symptom of the "YOLO bug" (thanks to our Trading Psychology lessons!), I knew it was time for the cure. I shut my Webull down for the rest of the morning. Stop-losses were set and price alerts were armed for my existing positions, but for the morning, I decided to take a break from the market.

My Notes For $SNAP In TraderSync

The Power of Self-Awareness: This experience highlights the importance of self-awareness in trading. By recognizing my personal triggers for emotional decisions, I was able to avoid a potentially costly mistake. It's a constant learning process, but catching myself before diving headfirst into a YOLO trade is a major win! TraderSync helps with this.

Lessons Learned:

  • Stop-Losses are Your Friend: Never underestimate the importance of stop-loss orders. They protect your capital and prevent emotional decisions during sharp price movements.
  • Emotions Cause Forced Trades: When emotions cloud your judgment, you start forcing trades that don't align with your strategy. Wait for your high-probability setups and trade according to your plan, not your feelings.
  • Self-Awareness is the Best Medicine: Learn to recognize your personal triggers for emotional trading. Once you identify them, you can develop coping mechanisms to avoid costly mistakes.

This experience served as a powerful reminder that even seasoned traders can fall prey to emotional decision-making. By prioritizing self-awareness, sticking to our trading plan, and utilizing risk management tools, we can navigate the emotional rollercoaster of the market and make sound trading decisions.

$SYM Trade

Our order for $SYM filled this morning for 2 shares at $35. After $SNAP I made sure to set my stop loss order for this one.

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