So I lost about $200 this morning on a stupid processing mistake. Crazy!
Mistakes are inevitable in this industry, but some are just plain old dumb because of how easily it could’ve been avoided.
After $OCRX was coming off its highs pre-market, my plan was to buy the dip either at 1.65 or 1.45 for a nice bounce play up to its highs in the 1.90s–a nice 30 cents a share gain.
Well right before the market opened, it did exactly what I thought and hit the 1.65 target area. So I put a limit order for 1.69 in anticipation of the bounce.
Nevermind that the bounce didn’t happen as anticipated because before I knew it, my order of 1.69 was filled at 1.64! WHAT?! And then by the time I realized what had happened, it was a bitter $200 loss and lesson learned!
Here’s what went down. When learning about the various market orders you can place to execute your trades, I had an oversight when it came to the “limit” orders. Basically, a “limit” order guarantees your trade will be executed at your specified price limit…or better.
My oversight was the “or better” part. So say you want to buy XYZ stock at $5, it will guarantee your order gets filled at $5 or lower. The same goes if you wanted to sell XYZ stock at $5, it guarantees $5 or higher. It’s the “lower” for buy orders and the “higher” for sell orders that are considered “better” in terms of how limit orders work. And that’s where my oversight was.
You live. You learn. And in the Stock Market, you will probably learn more than you live–at least in the beginning.
Good thing I didn’t quit and just give up in despair because I am now up $200+ on $CERC. Seen this bad boy making new intraday highs and breaking multi-month highs, so bought the breakout before market close and holding over the weekend as it could run further. But gotta be careful to lock in profits along the way and to cut losses quickly if wrong.
The Stock Market is so much fun and has its evil ways, but if you stick to discipline, accept the pain of losing, never give up and keep learning to improve, you will see successful financial results.