Wow, I keep impressing myself with these day trading stunts I pull off. This trade qualifies as a ‘Stupid Trade’ and netted me a nice loss.
On 3rd Sept the story begins with a pre market email from my broker which listed this stock as one of the pre market movers.
The story befind this was that they have got an approval for the swine flu vaccine.
Note that the stock had already moved, people will be taking prfits now, I knew all this but I was jumping on the news and trying to even see if I can buy this premarket (good that I did not)
So at the open, I buy 100 shares of SVA and then watch miserably as this plunges immediately after and starts to generate a loss for me.
Luckily I stick to my rules and exit out.
There are multiple problems with this type of trading.
- I have no idea what the company does in terms of proce history, fundamentals et al
- I am acting on impulse
- I am buying when the stock has already made a huge move to the upside
So, I am bound to fail and lose $46 on the trade.
The only smart move I made was to cut my losses quickly.
