We all make mistakes, more than we like to admit, even to...

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philsy18

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30/05/21

23:27

Post #: 53522909
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Originally posted by BackseatTrader: ↑

Rookie error last week brought my trading to a stop .

I bought CARR (the rights stock) and I had no intention of taking up those rights.
My 1st error was buying high.
My 2nd error, was not selling on Friday (the day I had bought them). By Monday, my account was heavily in the negative, as the broker then allowed for the takeup of those rights. I sold on Monday, but then by Tuesday was calling the broker to fix up my balances as I couldn't trade.
Ideally with this stock, Tuesday was the better day to trade it. But it was too late, I had already sold for a loss, and didn't want to go near it again.

This was the 1st time I had traded this type of stock, and did very little research (another error). I thought it would trade till June, but then found in the documentation that it would be removed from the ASX on Wed 26th May.

So I guess I have a question for the HC gurus out there.
With this type of "rights" stock, can it go into a trading halt during the short time its available to trade?
This is not the type of stock you want to be left holding.

I just sort of watched the market for the rest of the week, and got my account sorted by Thursday, but by then the momentum of trading had been lost, and I only bought GBR on Friday for an overnight hold.
I was a bit cheeky and on my other trading account I went and traded AMC (NYSE) for a profit. But I was not confident with this highly volatile stock, so I took a small profit. Having seen that it was on the upward trajectory, I kept trading during the week.
In at 14.40 out 15.70 (1 week hold)
In at 19.5 out 21 (D/T). Meanwhile, the stock went to 30.
In at 31 out at 35. (D/T)
And my final trade was a loss that wiped out my gains. In at 35 out at 26 (D/T). I kept wishing it would go up, but then I bit the bullet.

Historically, my bad trading always seems to come apart on the 3rd D/T.
I also have a bad habit of not allowing a stock to gather its momentum over a week, but this stock was too risky, and I'm no professional.

Lessons for me:
1. Research and read documentation carefully (especially when you're unsure what is being announced)
2. After 2 D/Ts on same stock .... move onto another stock. (unless you're prepared to lose that capital).

Looking forward to Monday, now that I have a bit of cash.

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We all make mistakes, more than we like to admit, even to ourselves. I reckon it's ok to do more than two trades on the same stock but you've gotta be using your charts to see the patterns
they give a pretty good indication of when somethings got more legs in it or it's topping out
I don't know how I traded without charts
it's like trading with a blind fold on just watching the market depth

Last edited by philsy18: 30/05/21
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