{"id":3120,"date":"2009-12-23T11:53:06","date_gmt":"2009-12-23T16:53:06","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=3120"},"modified":"2010-01-08T10:59:11","modified_gmt":"2010-01-08T15:59:11","slug":"learning-how-not-to-lose-money","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/learning-how-not-to-lose-money","title":{"rendered":"Learning How Not to Lose Money"},"content":{"rendered":"<p>With my post nasal drip cough I tucked myself into my trading station ready to perform. \u00a0AST who sits to my left was interested in RHT. I didn&#8217;t have a stock(s) I needed to trade, so I traded his. \u00a0RHT on the Open was a lesson in how not to lose money.<\/p>\n<p>1) RHT first moved higher after its gap up on the open. \u00a060c was cleared for size. \u00a0Time went by. \u00a062c was cleared. \u00a0Time went by. \u00a065c for size. \u00a0It ticked towards 60c, time went by. \u00a068c for size was cleared. \u00a0It ticked towards 65c, time went by. \u00a070c got cleared, time went by, 72c got cleared, time went by. \u00a0RHT was trading higher but way too slowly.<\/p>\n<p>So we had offers getting cleared that is bullish. \u00a0But we had a set up that offers too much risk right on the Open. \u00a0RHT had gapped up so there was danger of it dropping out on the Open. \u00a0Yes offers were getting cleared but they were not lifting quickly, after they were the stock was not exploding, RHT was not spreading out. \u00a0Yes I was still long but for small size, lightening up along the way playing defense.<\/p>\n<p>To me the\u00a0description\u00a0above could have been the reverse accumulation set up. \u00a0With all that buying and not much of an upmove this breeds risk of a quick reversal. \u00a0And then we all saw 41c after 75c would not print much.<\/p>\n<p>There were a few groans on our desk as RHT changed price. \u00a0But this was to be expected. \u00a0This is a pattern of risk. \u00a0This was not a long to load up in. \u00a0You needed to be light and flexible. \u00a0I took a small loss and moved on.<\/p>\n<p>2) RHT traded in a range between 30c and 73c after the drop out above. \u00a0I play RHT from the long side and made the spread a few times. \u00a0I did not do so with size. \u00a0 I said to an inquisitive trader on our audio call, &#8220;I am long but I am not that long. \u00a0I am not willing to take on much risk with this trade.&#8221; \u00a0I observed that this was a set up that was not one of my best plays. \u00a0It was a C trade. \u00a0So I was in the play, but more just to gather some information.<\/p>\n<p>RHT dipped below 30c, and I hit the bids playing the break of the range. \u00a0It did not tank so I covered some immediately holding a small short position. \u00a0Again this was not a great set up for me, another C trade, so I was not willing to take on much risk.<\/p>\n<p>3) Gold started getting chirped on the desk. \u00a0I started a small position in FCX, C trade. \u00a0Again small because this was not a trade that highlights my trading strengths. \u00a0I took a small loss in FCX and moved on.<\/p>\n<p>4) RHT finally started to trend lower, but the subset for how it was trending was not a favorite trade of mine. \u00a0I was short. \u00a0I was short small. \u00a0I was holding. \u00a0But again I was not willing to take much risk in the trade.<\/p>\n<p>How much we take home each month is the result of how much we make MINUS how much we lose. \u00a0Staying small in a trade that does not feel right to you is the skill of a long time trader. \u00a0Keep your risk minimal and your losses small until you find a play that offers an exceptional risk\/reward to you. \u00a0 Save you risk for your A trades. \u00a0Learn to minimize your risk on your C trades.<\/p>\n<p>Best of luck with your trading! Don&#8217;t forget to <a href=\"http:\/\/twitter.com\/smbcapital\">follow us<\/a> on Twitter.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/12\/RHT-12-23-09.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3122\" title=\"RHT 12-23-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/12\/RHT-12-23-09.png\" alt=\"\" width=\"470\" height=\"370\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/12\/RHT-12-23-09.png 470w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/12\/RHT-12-23-09-300x236.png 300w\" sizes=\"auto, (max-width: 470px) 100vw, 470px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With my post nasal drip cough I tucked myself into my trading station ready to perform. \u00a0AST who sits to my left was interested in RHT. I didn&#8217;t have a stock(s) I needed to trade, so I traded his. \u00a0RHT on the Open was a lesson in how not to lose money. 1) RHT first moved higher after its gap &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/learning-how-not-to-lose-money\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,14,10,453,15],"tags":[162,30,444,18],"class_list":["post-3120","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-intraday-levels","category-mike-bellafiore-bellas-blogs","category-trading_ideas","category-trading_theory","tag-day-trading-blog","tag-prop-trading","tag-rht","tag-smb-capital","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Learning How Not to Lose Money | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/learning-how-not-to-lose-money\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Learning How Not to Lose Money | SMB Training\" \/>\n<meta property=\"og:description\" content=\"With my post nasal drip cough I tucked myself into my trading station ready to perform. \u00a0AST who sits to my left was interested in RHT. I didn&#8217;t have a stock(s) I needed to trade, so I traded his. \u00a0RHT on the Open was a lesson in how not to lose money. 1) RHT first moved higher after its gap ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/learning-how-not-to-lose-money\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-12-23T16:53:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2010-01-08T15:59:11+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/12\/RHT-12-23-09.png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta 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