Secondary offerings

Secondary offerings have gotten me at least two times for 10% losses or more.

They have been happening in stocks that had been in bear markets for many years like coal and steel. 

I really need to be wary of these stocks in the future. If they have flashed signs of weakness such as a high volume peak in the past and a recent very high volume up day, these are pretty clear signals that something fishy is about to happen in this stock. Get out while you can!

**Mental laziness?

After a session of breath meditation and focusing which centered on my resistance of feelings, I had a realization. And it was that my mental habit could be limiting the way I all with the world and my problem solving abilities.

My habit is this: when I’m thinking about one idea, and my mind shoots out an idea that counters or seemingly conflicts with the original, my mind sort of shuts down. The ideas sort of “cancel” each other out and I just stop thinking about the topic completely.

Maybe what I should be doing is holding both ideas in awareness or writing them down and pondering them a little bit further. In other words, to reduce my mental laziness, and improve my mental sharpness and work ethic instead by breaking the habit of dropping these conflicts of thoughts so easily, and working on moment by moment discernment and knowing.

**The psychological importance of defining and limiting risk

Afer doing some focusing, I realized the scared feeling I’ve been getting lately could be related to stocks. I’ve been really scared that I’m down so much recently and that this could affect my further and my dreams. 

But I realized I only feel this way when I’m down big and really close to being out of the game because of my investor loss limits.  However, if I were to have cut my losses very short and limit my risk every time, I would not be feeling like this. In fact I would have had to lose many times to get to this point. I need to cut my losses and more importantly define my risk before I buy, and stick to it.

From now on, for the sake of my own happiness AND for my and my friends accounts, i promise to limit risk to the T every trade, and get out right when I need to. It can Always Go lower.

I’ve been getting out of positions way too early.

My positions have been correct a good amount of the time recently. I’ve made decent money on them, BUT my problem is im getting out too early and missing out on much more potential profit.

Specifically, I’m exiting based on fear of other technical factors such as support, superstock moving average, short squeeze, etc. After studying the charts, had I just waited for an opposing no volume test to pass before exiting instead of doing so on a whim, I would have stood to made thousands more dollars. 

Bottom line is, I’m trading on emotion instead of based on volume and price. Stop that!

Research watchlist methodology

I should keep a smaller watchlist so I can watch more closely and have more capacity to be aware of the major indexes.

I think on the weekends I can spend time going though stocks that showed pocket pivots throughout the week, and that showed no supply tests while in a bull market, and then ones that showed no demand in a bear market or at market turns. 

Then I’ll pick a small watchlist of 30-50 stocks from there that showed the most promise based on a number of factors ( signs of strength weakness, quality of base, quality of fundamentals, beta, quality of breakout, moving average position, new highs etc. 

I’ll keep that running list of 50 max stocks and curate it each weekend to include the new better stocks and remove the ones that are extended or failed. I should try to be a bit diverse too in the industries I include.

As a part of my weekend research I should always research the major ETFs like UNG, USO, IBB, CAF, GLD etc for changes in industry direction.