My First Bid/Order in Trading, failed!
After making my own analysis and computation, I finally made my first order. The first company that I bought shares with was MARC (Marcventures Holdings, Inc.). The prices were playing at 4.0 to 4.5 with points constantly changing from time to time. Meaning , the values change in a minute or two or 5 or stays the same for a couple of minutes or even an hour, and then drop down or go up unexpectedly.
I didn’t know what’s happening and I couldn’t tell either what’s going to happen next but I was observing the trend. I didn’t rely much on the current price movements but rather on the historical data. I found that its 30-day high is at 5.41 and the 30-day low is at 3.60.
And maybe for a first time trader like me, I just wanted to play it safe. So I placed an order to buy shares at a price of 3.7 which is way beyond the current values. My idea was if the 30-day low is at 30.6 then it’s possible that the price may drop down to 3.7 even if the prices were currently moving from 4.0 to 4.5
Actually that’s possible. Nobody knows what the next value would be so any value is possible. But I guess one of the techniques here is to analyze the trend. And this is only possible if you are completely monitoring the price changes. Because we really can’t tell what the next price would be. At one point it was 4.2, then you blinked your eyes for a second and when you looked back at your monitor it’s already 4.9. That’s how fast the changes could be. And those tiny decimal points matter a lot especially for big-time traders.
What was funny here was the fact that I moved away from the trend. And I think a wise trader should always be on the trend. If you stay away from it, then you’ll be left out. Others will gain while you gain nothing. And that’s what happened to me. The buying price that I chose what too far from the trend line that was almost impossible or unrealistic to go down that much. Therefore, my first bid failed.
For experienced traders who might have seen the price that I posted, they might have said, “Dream on, girl!” 🙂 Or maybe they said, “this fella is a newbie who’s goal is for long term investing.”
But then again, it’s my first day! Please bear with my obviously newbie moves. Let’s see how well I trade in the coming days (if I will get any better…) hehe.