My trading has been at best erratic over the last two weeks. I have gone from nice gains to heavy losses. The main catalyst behind this is a position I took out on PLS.IR which I had been monitoring for some time. The share dived and I saw it as an opportunity to buy. Unfortunately it hadn’t completed its swan dive and at 8 euros a cent it cost me dearly. As a small stock the spread was quite large and to begin with I was down 250. By the end the trade cost me 550 and left my account in bad shape. I still firmly believe my trade was right and thanks to a good stop I was out before the share dived 12%. I am still looking to buy once the dust settles but over a longer duration.

Since then I have completed a number of erratic trades losing me another 200 euros. This is a clear sign I am overtrading and hence this post to confirm that and remedy it. I have done well in the only trading method I seem to have which is to wait for a down trend and ride it lower. This hasn’t worked for the up trends as the markets have been in a state of disarray. The FTSE is just above 6000 and the Dow Jones has gone under 13,000 for the first time since August.

My trades from now on will consist of waiting for the right moment to pile into a down trend with tight stop losses. My only saving grace is that I only lost 550 and didn’t wipe the account out which could have easily have happened.

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