Buy 1: Bought it first at 1.68. My reason for buying it was the gap, that was pointing to 1.89 as an immediate target. However, the next day, it reversed closing lower and now pointing to fill the gap but I was being stubborn that time so I held to my position thinking it would be quick to rebound the next round.
Buy 2: Bought another set at 1.63 thinking it was the bounce that I was waiting for. However, just like the first trade, it reversed immediately the next day. The reason behind this second set was (1)I thought it was the bounce that I was waiting for; (2)Rate of change has started to point up suggesting an upswing in the short term - believing that it will reach the previous peak at P2; and the last but the most fatal error one could make in a trade: (3)Read on a forum that Abacus(brokerage) was accumulating because it has a "very good" earning report that is coming out come 3Q earnings report - which was also magnified by another guru saying that DGTL story is a turnaround story.
After 9 trading days, the uptrend line was broken so I decided to take the hit and cut loss to preserve capital and to avoid further loss in trading opportunities. I sold both positions 1.69 and 1.64 at 1.59.
The trade averaged a 6.84% loss to the entire trading capital.
Conclusion:
If I didn't take the hit and sold the entire position, I would still be incurring further losses as it continued to decline further up until now and I would have missed a very profitable trade that I have which is still open(Aboitiz Power).
Lessons from the trade:
(1)Never trade without a plan.
(2)Never make a plan after reading other people's analysis on a certain stock.
(3)Never trade on a tip. When there's a tip, there's a tap.
So the big question now: Is DGTL a turn around story? See it for yourself.
Don't be a sucker.
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