I funded my robinhood Account in March of 2015. My first purchase was with a nano-technology company called Nanosphere, Inc. (NSPH). I always found nanotech interesting and think there is a big future in that sector. I purchased 25 shares at $0.25. It was not a decision based upon a pattern forming, so my first mistake was not following my plan.
A week later, bored of watching the price go absolutely nowhere, I sold at $0.24. A few weeks after that the company did a reverse split of Stock, so I’m glad I didn’t wait. After this point I began using the patterns to enter stocks. I seemed to be doing well identifying stocks that had breakouts, but overall I was non profitable.
The problems were threefold. First, I sometimes entered a position before a breakout occurred. There’s nothing wrong with this so long as you get out of the position if the stock does not do what you’re expecting. I did not follow that rule, and in fact, if the price moved against me I would add more to the position since “it has to go back up eventually”.
Secondly, I sometimes left a position too soon. One a breakout occurs, it’s typical for the price to come back and retest the prior resistance (now as a support). Those corrections usually scared me and I would exit my position only to watch the price bounce back up and continue the breakout.
Third, I traded out of boredom. I would trade patterns early, before they really formed. I would trade based upon what others were talking about on social media rather than using my own analysis.
After 5 months, I had deposited about $135 overall into the account. During that time I had made some good trades, but overall my bad trades outweighed them. I had lost about $24 due to my trading decisions. I liquidated the account for around $111 and decided that I should take a break. I would come back and try again once I was recommitted to following my own rules.