In life, we learn the most from our mistakes, if you think back to when you were a child there were plenty of these. In trading it's no different, the best traders in the world are only right about 40% of the time, but they learn the most from those 60% of failed trades. After a trade is closed, we fill out a trade report card, so we can look back and see how we executed our game plan. Was it good/ bad/ horrible etc, as you look through your trade, you will see where your strengths and weaknesses are. You have just started paper trading, if you were stopped out of a trade, fill out the trade report card below and which takeaways you have learned from your first failed paper trade! Below is an example of a Trade Report Card.
Entry Bid $73.80
Stop $ $71.49 (-$250)
Target $80 +$700 (3-1)
Idea - Bid in flag to hold for break out to $80 area.
Chart Pattern - Bull Flag, Top Right, Gap Up, To New ATH.
Game Plan - Change to near break even lost $50, was up $400.
Psychology - Felt great at $78 there was a feeling to sell it but felt $80 was in reach. Next day pulled in no biggie, then pulled in pretty hard, but had a $1 flag around $77. At $76, was thinking of adding but did not. Pulled into the close and at this point, moved the stop from $71.50 up to my entry price, at this point if that area failed it was more than likely going lower, rather get out near flat in a profitable trade than have to rot in it.
How I feel about the trade - For my first trade in 6 months, I feel my entry and actual time the position was red (less than 5%) to be good, and getting out even good as well. Tough with 100 shares since it’s all or nothing, with 200 shares could have sold into strength and held 100 back. Feel based off the chart that it can easily come back into the $70 area and if it does I will look to re enter.
Takeaways - 100 share trading is difficult, Good First Trade.
Trade update, lost $100 in this trade, if I had no plan, I would be down $2500!
Do you have balls?
In the Group Chat go ahead and fill out your first Trade Report for any paper trade that you closed out. Below is an example for you to use.
Trade Report Card
Insert Stock Chart Here
Stop $ -
Target $ -
Chart Pattern -
Game Plan -
How I feel about the trade -
Post in the Game Planning Group Chat