I named today as "blowup day" because the way I traded was full of emotions, FOMO and didn't respect the recent biotech mania action. It reminds me of 2 years ago the tickers pop up after HTGM's squeeze. I made the same mistake and from the action I can tell lots of others are in the same boat as mine. Due to conviction, tape it's hard to pass it. $10.50 shows clear heavy sellers so I took 12000 shares position risking $10.50-$10.70 area....guess what when it held $10 several times it started to skip. 30 cents, 50 cents uptick uptick which makes me hard to stick to the original stop plan. that should be foreseen before it happens. when a similar stock MLNT traded yesterday premarket it's also up 100ish%, it's also biotech. and after it's already up 100% it went above 200%. same group of traders will be chasing it. so here is the mistake:
1) yes it kept rejecting $10.5 area BUT $10 lvl hold multiple time, that's red flag. I should be at least size down 50% or all. I could have taken $6k loss but instead I turned it into $20k due to FOMO, due to conspiracy theory, due to the thinking what if they pulled the support and quickly drop down to $8.
2)shitty start at the begining that's definitely taking some toll on my mind I tried to stay focus and not lettting it influencing my read, judgment and action but here leads to mistake No.2 it shot up big to $12, stuff and back to $10.50 in a blink of eyes I thought this move is over, that's openning staff action, every longs will get out but instead it held again above $10 lvl for 2-3 min and shot back up to $13. 50 and at that point I have full position!!! talking about 16000 shares with $11.4ish average. I was quickly went from up a few grand to more than $32k down unrealized. I totally lost my mind at that point and have no choice but start covering at least some portions. Then I noticed it's just another liquidity shot so I quickly put shares back on and this is the right thing I did. but again the damage is there. I was down more than $30k unrealized when it's not even 10am yet. totally totally disastrous start but due to conviction I kept forcing myself to stay in it.
3)price action confirms to my thesis. it finally have a WTF kiss of death candle and went into halt under $10 so I told myself "don't cover, don't cover" but when $9 cracked it quickly fell and reclaim and kissing $10 again. the right course of action would be cover at least 1/3 and put shares back on due to shitty start of the day, due to frustration, due to mental damage I experienced earlier. But didn't. Again I just wanted more, more and more.
it's nearly 11am and I have full position with $11ish average. the stop out lvl would be $10.50 break and hold, others I am going for homerun. Ideally midday offering.
ended the day with nearly $30k profit but man Number don't tell the story!!!! was very very closed to the point of stopping out. The way I traded just really elevated the risk tremendously!!!! super avoidable in the future!!! the main thing is FOMO!!!! secondarily it's pnl attackment. When I was down big I couldn't just eat it so I turnd a small loss into a mother fucking huge one. Imagine what if this stock didn't stuff at $13.50, what if it stuffed at $15...then what???? even if I am right at the end but I would get liquidated before that. Trading is all about timing!!!! a step too early that makes difference when you stay alive or end of the career. so humbled about today's roller coaster ride exp.
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