Day 40 Trading with Ricky

Physical State: approx. 6 hours of sleep. Caffeinated, and felt tired and mentally slow

Symbol: BCAN

Type: LONG

Outcome: LOSS

Market Hours: EXT

News (at that moment): YES; YND Cannasoft Enterprises Inc., an Israeli integrated software company, has shifted its focus from constructing a medical cannabis facility to penetrating the global Femtech sector due to negative market changes and financial constraints. The company is redirecting its funds to develop products targeting female wellness, including CBD-based innovations, and is considering acquisitions in the CBD and Femtech industries.

Stuck to Rules: No, green candle chased

Review:
As reflected in my P/S excel, yesterday morning I found myself going on what traders call “tilt”. I've started to recognize that on days when I feel mentally fatigued or groggy, my decision-making tends to suffer, and emotions can easily take control. I'm unsure how to effectively address these moments; perhaps I need to refrain from trading altogether or engage in physical activities like pushups to invigorate myself. Many of the trades I executed yesterday lacked careful consideration and resembled more of a gambling approach.

One particular trade stands out as a valuable lesson. When Ticker BCAN experienced a surge in volume due to positive cannabis-related news (reflective of the broader movement in cannabis stocks), I made the mistake of impulsively jumping in, chasing the initial upward momentum without waiting for a pullback. Predictably, the stock immediately reversed, resulting in a significant loss. Despite this setback, I hesitated to cut my losses after witnessing a large red candle, clinging to the hope that it was merely a temporary dip. However, the downturn persisted.

Fortunately, I didn't cling to my losing positions for an extended period as I have done in the past when emotions ran high. It seems I'm making progress in that aspect. Nonetheless, the primary takeaway here is the importance of avoiding blind pursuit of upward momentum solely based on green candles.

Lesson Learned: The main takeaway from this experience is to refrain from blindly chasing green candles.