A Position I Got Completely Wrong!
When you are investing. you can get in the way of yourself and your gains pretty easily. This is a story of what I did wrong in a recent position. It all started when i found a new project that I was on. I thought I would dollar cost average into it. This was lazy and it was also my first mistake. I should into my head to buy UPTRENDS only. Over time, this will result in more money in my pocket. So jump into the chart.
The first thing you should notice here is that I was buying a downtrend. Big no no. Over time, this is probably one of the worst things you can do to your cash. As stated on the chart, I bought three times. I was trying to build a decent position in the asset for the big move up. Then we had a massive dump and my head seemed to get wired backwards. THIS right here is the main reason that buying downtrends is not good. It messes with your decision making. I literally started doing things backwards. NOT GOOD! Then, I finally capitulated. The reason? Apparently a haha. What else did I do?
BAD RISK MANAGEMENT. I sold it all at once. What a genius move! I honestly never do this. Especially in a bull market.
So when we look back at this and ask what can we learn, the biggest thing is buy trends. Seems easy right? Well every once in a while, you make a mistake. The key thing to do is recognize and reflect. So that is it for today! Happy Trading!