Thursday, March 24, 2016

Day Trading Big Loss Avoided

Last year I traded Twitter ($52.30), GoPro ($43.75) and Tekmira ($22.10) now known as Arbutus Biopharma Corp. I day traded meaning I did not hold on to them for more than a day.  I tweeted a few of my trades. I was very busy so I just made enough to cover school expenses.  I did eventually trade twitter up until their earnings report and somehow results leaked out early which I was not expecting so when I came to check my computer I noticed my trade went bad.  I would have only taken a $1500 loss but the problem was that I had just entered a traders halt the worst possible scenario.  In the end I walked out with a loss that erased all my 2015 stock profits but not the biggest loss I have experienced.  I went against my own rules which is why it backfired I overtraded and left the trade unattended. I did however exit the trade and did not hold on to it to see if it came back around. I know better than that you can easily become reckless in your trading.

I have learned from older men whom have lost their retirement money that a small loss easily becomes an enormous loss when you hold on to a bad stock.  In the past I would have taken a break to cool off and returned to try to make my money back. This past year was very hectic for me I could not trade at all I needed full concentration in school.  Stock trading is a fun way to invest but it should not become an addiction or an unhealthy gambling problem.  Money is not the most important thing in life. At some point I will have a bit more time and I will return and make it back as I have in the past. In the past 7 years 2015 has been my only unprofitable year just because I was too busy to continue trading.

From the pictures below (last few trades I made in 2015) we can see how in less than a year I could have lost an enormous amount of money over $85k.

I last traded Twitter at about $52.30 it now trades at $15.91 had I held on to it I would have lost $36,390

I last traded GoPro at about $43.75 it now trades at $12.42 had I held on to it I would have lost $31,330

I last traded Tekmira (Arbutus) at about $22.10 it now trades at $3.99 had I held on to it I would've lost $18,110