This week had some solid opportunities and a few learning moments. Let’s break it down day by day, plus a quick lesson on handling losses.
Monday:
No trades since the stock market was closed for a holiday.
Tuesday:
My first trade was on STAI, which was on Friday’s premarket watchlist but it didn’t trigger until Tuesday. I took the breakout over $2.81, as planned, and sold at the lower end of my max target zone for a 1:1.8 risk-reward.
Shortly after, PRPH from the watchlist triggered. I used my breakout entry method and sold within my max target zone for another solid trade.
Wednesday:
The only stock on my game plan was SINT. It triggered an entry but turned into a false breakout, resulting in a loss. False breakouts happen—it’s part of being a breakout trader. The key is managing risk, and I kept my loss within my max limit. I didn’t revenge trade or force any setups. Even though I only took one trade, I ended the day with no regrets.
Thursday:
None of the premarket watches triggered, but I found three stocks through my intraday momentum scanners that met all the criteria I look for.
WOK: As you can see from the illustration, this one hit my target range after I entered but I didn’t sell. Usually, when a stock makes a strong initial move after I enter, I try to take profit at the upper range of my target instead of my normal bottom range target. As it pulled back, I was thinking it would make one more push to hit my exit point but it ended up crashing stopping me out for a loss.
XOS: This one produced a perfect #3 pattern. Usually when a confirmation pattern forms, I try to sell in the middle/upper range of my target zones. I chose the middle of the zone to sell giving me a decent reward on the trade.
MNDR: I took two entries on this one.The first was a breakout over the premarket high, targeting $0.66, but I didn’t get filled once it hit my target. When the price pulled back, I anticipated a Confirmation #3 pattern and added to my position. Shortly after, it hit my target, and I sold for a decent profit.
Key Lesson:
Losses are part of the game. What separates successful traders from the rest is how they handle them. When I took a loss on SINT and WOK, I accepted the loss, stuck to my plan, and didn’t let emotions take over. The worst thing you can do is revenge trade or chase setups that don’t meet your criteria.
That’s a wrap for this week! Keep refining your process, and I’ll see you in the next recap.
- Josh