20070411 - NUVO - 15mins - Loss

Symbol: (NUVO)
Type: Short
Entry: Half way through the 6th bar
Exit: Protection Cover executed at the 7th bar high
Result: Lost -3.41%

Another poor judgment that led to a devastating lost. I've been monitoring (NUVO) during the past 2 days, and I knew that this stock has been active. When I saw the 3rd bar closing clear of the Opening Low, I didn't bother because I slightly concern about the lower tails in the first 3 bars. 4th bar came a hammer, followed by a weak 5th bar. Once the 5th bar has completed at its low, I decided to enter Short. The prices went down so fast that by the time my order was in, I was already half way down the 6th bar. When the 7th bar turned North, it's when I realized that the 'some-what' falling 5eMA was a long way back! I panicked! Because I want to minimize my risk! I know that if the prices re-test the 5eMA resistant, I will get very uncomfortable. More importantly (stupidly), had I take a look at where the 5eMA was before I enter, I would not have even bothered! I made a rush decision... AGAIN!!! How disappointing!

With all these thoughts going through my mind, while watching prices heading up towards the 5eMA, I made the decision to Cover my loss and forget about it! I am just not mentally prepared for this battle! I realized that I just went into a fight without properly preparing myself, both mentally and mathematically!

Looking back at the charts now, I can tell you that my first target was the 119% Fib. Ext. My second target was at $4.34, which was the Support established 2 days ago. My final target was at $4.11 which is the Resistant established back in March. As of right now, it doesn't appear that (NUVO) will hit any of my target. Still, had I have the guts to stay-in, I would still be better off than a 3% loss!

I felt that I was prepared at that instance. But I was wrong. It seems that I always missed something before I jump into a trade. I am just too inexperienced! I am beginning to think that I need to practice more before I get into more real money action. :-(