Took a couple solid losses this morning. The premarket charts/setups were great, I bought in right at open on key levels assuming they would go up, but they did not, they went down. I didn't wait for a bullish candle or validation of the setup, I just bought in at key levels because I was sure I would miss out when it opened and they went up.. I need to wait for validation before buying in.
Also, I'm not doing a good job managing a maximum loss amount. There are a few ways i can do this better. I could take only 1 trade at a time. ensuring my risk is below a set level, or, I could limit my open risk to a set amount (total the risk for all open trades. I need to do a better job of managing the risk and hitting targets. I think I want to (for now) have a max loss for the day of 5$ and a target profit for the day of 5-10$. Only have up to 5$ risk on the table at any time.
- Wait for validation before entry
- Only allow 5$ risk on the table at a time