Trading Journal
“First learn to trade then the money will follow!”
TQQQ / NASDAQ QQQ & NVDA TRADE
It is not a coincidence that both the Nasdaq and NVIDA’s price started to rally above the trend line moving in the opposite direction from my Short position (Nasdaq is the largest technology exchange market and NVIDA is one of the largest companies on the Nasdaq).
In light of the Stochastic RSI on the daily timeframe moving recently from the oversold position and convincingly towards the overbought , I decided to cut my loses immediately, closing all of my Short positions.
The result is that I sustained two small loses, but as they say: “cut your loses, and run your profits.”
Learning Point
- Before entering a position always look at the 4 Hour, the Daily, and the Weekly timeframes Stochastic RSI to see whether they support or go against the expected trading direction.
- Entering small trading positions meant that psychologically I found it easy to cut my loses very quickly.
- Assessing the charts around the time the markets just opened had allowed me to exit my trades with small losses. Any later, and I would have unnecessarily sustained a larger loss.
Next Action
- Update trading spreadsheet with loss relating to TQQQ.
- Update trading spreadsheet with loss relating to NVIDA.
- Review all outstanding trades using the Stochastic RSI on the daily timeframe.
- Priorities assessing outstanding trades at 2.30pm when the markets open.
IVG (Involgize)