Real Examples of Trades: What Worked and What Didn’t

By Jane Smith

Introduction

Day trading is a high risk, high reward career. It’s essential to learn from both successful and unsuccessful trades. In this blog post, we’ll examine real examples of trades I’ve made, discussing what worked and what didn’t.

Successful Trades

• Trade 1: Buying Low and Selling High

  This is a basic strategy but one that brought me significant profits. I bought shares in a company after a sharp price drop and sold them when they recovered. This strategy worked because I had done my homework and knew the stock was likely to bounce back.

• Trade 2: Short Selling

  I short sold a stock that was overvalued and about to release disappointing earnings. After the earnings report, the stock price dropped, and I made a profit. The success of this trade was due to thorough research and analysis.

Unsuccessful Trades

• Trade 3: Ignoring Stop-Loss Orders

  I made a loss when I ignored my stop-loss order, hoping the stock would recover. It didn’t, and I took a significant hit. This taught me the importance of sticking to my trading plan and respecting stop-loss orders.

• Trade 4: Following the Crowd

  I bought a stock simply because it was the talk of the town. Without proper research or a clear strategy, this trade resulted in a loss. This experience reminded me not to get swept up in hype and to always do my own analysis.

Conclusion

Day trading is not a guaranteed way to make money. It requires careful planning, diligent research, and discipline. I hope these examples of my trades provide valuable insights and help you in your trading journey. Remember, every trader makes mistakes. The key is to learn from them and always strive to improve.