Simple Technology STEC

Simple Technology STEC is an example of trade where I went ahead of myself. I speculated without having any supportive data and got it wrong. I ended up loosing 8% in matter of hours because of high volume reversal before hitting my stop.

What did i do wrong? First proposition was that next day STEC will break upper Borlinger and Breakout with higher volume. I based the assumption on strong tech and Nasdaq for a week. But I ignored that despire higher than average volume STEC failed to register significant price increase, and failed to break above trading channel. Second tech reversed the trend, that failed my assumption on which i was hoping breakout.

This trade also brings to light my psychological weakness. I was lured into this trade. I was watching this stock for a week and thinking I should have been into it. Feeling of having missed the train. And when it looks too promising, it is a trap. I got into the trap and became a bag holder for big money guys. I can not afford that.

Now as dumb as this sounds, because of my full time job I do program trading. So what i programmed previous night, will not correct until next night and will be executed.

Keeping the lessons in mind I should from now on refrain from speculating without supporting data. Wait for confirmation before making the trade. Be Disciplined and Be Organized.