Post 45: Lessons from my top 5 trades last year (2017)

They say that we can learn a lot of lessons reviewing our loses and mistakes, while it is accurate, I also believe that we can learn a lot from reviewing our winning trades.

Below are my top 5 winning trades last year. While I am happy with my profits, my numbers showed I only have approx 21% average profit last year. (See previous post) Quite low if you ask me.

Reviewing my trades helped me identify problems in my process. Because of it I can implement some improvements that will hopefully improve my results this year.

1. $ROCK

chart by www.bigcharts.marketwatch.com

I noticed an increased in volume and a slight uptrend mid-November that triggered my buy signal. Sold it when it broke the trendline Dec. 15, 2017. I timely avoided a turn of trend in this trade.


2. $MAC

chart by www.bigcharts.marketwatch.com

Bought it September when I saw a tightening price volatility with an increase in volume. Sold it Around November 22 with a 41% profit when it broke my trailing stop.

This stock perfectly stayed above 50 SMA, which is usually my last line of support in a trade. I could've hold it and be alright by now. It looks ready to take another breakout this year, I'll be closely watching.

Also, I could've seen this stock earlier if I am diligently doing my research. I could've bought it around June or July of 2017. This reminds me to do my research and screening diligently so that I wont miss many buying opportunities in the future.

3. $WLCON

chart by www.bigcharts.marketwatch.com

Bought this twice in May with an average of P5.42/share. Held on to it until I am convinced that it broke the 50sma on October 11, 2017.

Starting now, I will respect the 50sma as my last line of support. I guess I was hoping for the price to go up once more and give me the opportunity to sell at a higher price. Hope is not a strategy. Follow the plan.

4. MRP

chart by www.bigcharts.marketwatch.com

Here is another one that I bought a little late. January 2017 is where the ideal entry should be. I guess I'm not religiously doing my screening by that time again. (reoccurring mistake).

Another mistake I made is when I sold this at P8.68, a safe distance from any of my trail stops. I could not explain this one, I don't know why I sold this at this price. I could've squeezed a little bit more from this trade if only I have just defined my selling strategy.

It is very evident by now that I need to work on my selling strategy. Something I am planning to improve this year.

5. $IMI

By now I have to admit that I have a very faulty selling strategy. This one is a good run from my entry price of P6.91 to my selling price of P13.30 in August.

Why do I feel like I sold too late this time? I know I did.

The stock broke 50SMA and I sold it. I followed my plan but I still lost a big chunk of the profit and I felt bad about it.

Conclusion

It is very clear by now that I should be working on my selling strategy. I don't have the perfect system yet and this trades proved it. I am currently working on a selling strategy to at least improve my profit's average percentage.

I will also be allocating more time in screening potential winners for me to catch them in their earlier stages. Nothing beats a lower average price.

My batting average of 52% (13 out of 25 trades) is good enough, but I need to catch these winner earlier and learn how to sell them. A concrete plan with a win-win result is on the drawing board.

By reviewing my trades,  I know where my mistakes are. Knowing my mistakes will help me create a specific plan to address each of them.

My next post will be about my top 5 losers.