When I told you about my ADM trade yesterday, it reminded me of another time I made a similar kind of mistake in my trading.
It happened years ago when I was about to head out on a much-needed motorcycle trip.
I was in a hurry to get out the door, eager to hit the road and enjoy some time off.
Take note: Being in a rush is never a good idea, especially when it comes to trading stocks and options.
As I was rushing to get out the door, I was closing out some positions before I left.
One particular stock, ticker SLV, was still in my portfolio.
I entered an order to sell it at a limit, which was the bid price at that moment I was entering the order.
I fully expected the trade to close out immediately… and because I was in a rush, I quickly closed my laptop, thinking I was completely out of all my positions and free to go on my trip.
Fast forward to a week later, I returned home, opened my computer, and discovered I was still long on SLV.
The stock had dropped significantly while I was away.
What had happened was my limit order didn’t get executed because the stock price dropped by a few cents right as I was entering my order.
SLV never came back up and so my order never had a chance to trigger. As a result, I lost a good deal of money.
The lesson here? Always take the time to make sure your trades were executed properly.
Rushing out the door and not double-checking cost me dearly. From that day forward, I never used a limit order again without verifying that it had actually exectuted properly.
This ties back to what I said yesterday about keeping your trades in sight and on your mind.
It’s these small steps that make a world of difference.
By the way, tomorrow, Friday June 28th @ 11am Eastern, I’m going to be teaching a few core strategies tomorrow in a 100% free class:
- Watch how I spot trending stocks
- Discover how I know when to get out
- And even grab my TOP stocks for this summer!
All free when you join me LIVE!
Just click here to register your spot!
Trade well,
Jack Carter