Hi Junction14,
I think you are smart to look carefully at a trade when it goes wrong.
Many look away in disgust, and want to bury the mistake.
In reality, examining the misses is where one can find pearls, and future profit.
My core portfolio is rarely traded, but supplies me with a sustainable and growing dividend, so I let it work and I review it rarely. I can survive on this, and I let this work while I watch it work every now and then.
I have a portion of my account that I trade and I think about this and review trades in detail.
I have found that volume happens for a reason and those reasons may take weeks, months, or years to sort out.
The point is, by then it is too late, and no longer matters.
The train has left the station.
That volume is telling, however.
While there are times nothing is happening and it is Mr Market playing his games, more often than not,
Something is usually happening.
Sometimes it is good and the stock drives higher, sometimes bad, and it is followed by disaster,as what happened here.
My trading lesson is that I usually sell something into meaningful volume that also has a meaningful price appreciation.
Since I can't know which of the above situations are operative, I use a probalistic model to capture some profits, and ride free with stock ultimately.
Each to his own, and of course, caveat emptor.
Happy trading, and Happy Easter, Passover, or just happy weekend!
AI
