Thursday, May 2, 2013

Innopac - Chasing at Breakouts

On April 15th, shortly after I unloaded 400 lots of Innopac, I went back to chase the price at 0.225.

During that point of time, I remembered I was at the Phillip office having a meeting and of course meeting up with my brokers.I specifically told my brokers that the condition turns bad and my 400 lots of dumping Innopac should be correct. However as much Mind Games knowledge that I have, I still have some greed and fear of missing a further breakout in Innopac and so I went on to chase the price to only know that I committed a big crime after that. Moreover, this time round I increased my lot size to 1000 lots which is 2.5 times larger than my previous 400 lots.

As the days passed by, Innopac had been dipping 1 pip per day. I knew something was not right and I had to get out first. Again because of hope, I hanged on until April 23rd where I decided it's time to let go everything at the price of 0.2. So in total, I lost 5 pips about 25K+ and paid a hefty price in chasing which I seldom do. Well, I don't consider this a big loss because I had been through more losses years back. This is just a hindrance towards more successful trades to come.

Sometimes life hits you in the head with a brick. Don't lose faith. Steve Jobs.

Ronald K - Market Psychologist - The Big Speculator