Back on July 12 I took a huge loss in MDIA … this sort of set me up for the even larger loss I took in NURO later in the month … my full-time job is cutting losses, and I’m pretty good at it except for the occasions where I screw up (for whatever unknown reason, probably hubris), and I screwed up royally in MDIA.

I had shorted the morning pop at $5.08 … it did drop as low as $4.33 into hourly support then reversed and went up strongly. I was supposed to cut it just above $7, but didn’t, and in fact committed the cardinal sin of adding to a loser … then I was really screwed because I had too large a position (45 shares) and I couldn’t bear to take the loss (I guess?) as it squeezed higher, and I more or less top ticked out covering into end of day, covering between $15 and $15.50 for a loss of $385 (these numbers are missing many zeros, lol).

One mistake leads to a series of mistakes, and as I said, I believe that this bad trade set me up for something even more catastrophic in NURO. But I did learn from all the mistakes made in July and since then I haven’t had any trades like this one (thank god), and I just had my best month of the year in September. I took three mega losses in July: MDIA, NURO, and NAOV (NAOV (chart is below) happened just after NURO, which showed that I was still off my game). Without these losses, my year-to-date 2021 results would be over 50% higher than they are, so you can see how important avoiding large losses is. Don’t let a small loss turn into a large loss.

It’s good to review losses … it’s the way we learn.