I'm posting a recent trading mistake I made because I hope to never EVER repeat it again. I was making a trade to the down side using put options on Tesla Motors (TSLA) and got scared out of the trade on 10/24. Why did I get scared out? Because instead of using my Daily charts I was watching the short-term 5 minute carts and got freaked out when they moved dramatically against me.
Luckily I exited without making a loss OR a profit (so I broke even) but had I stayed in the trade and FOLLOWED DISCIPLINE I would have made a tidy sum as of today, October 29th.
The lesson here is this: whatever time frame you use to make your trading DECISION, stay in that time frame and don't look at shorter-term charts because they WILL fluctuate and they WILL throw off your discipline.
See the chart below...
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