See this is what technicians do, we read charts and we expose ourselves to the highest probability setups. However, I made a giant rookie mistake yesterday right before the close. I bought THQI into the close simple because I thought it was a beautiful breakout trade. What I did not realize was that they had earnings coming out afterhours and the stock tanked nearly 10% which set me back a good $1,500. Transaction below:
So please always, always check for earnings date, FDA approval date, or any major news that might change the course of the stock overnight and be sure to avoid them if your trade was solely a technical analysis.
BUT WAIT!! THE STORY IS NOT OVER YET: Like I said before, "You are not your losing trades."
I will manage to make back those losses soon, in fact, I think I already broke even in premarket hours, You know why? No, it was not from stock trading. It was from something more Gangster, RED ENVELOPES.
For those of you who do not know what, RED ENVELOPES are. Let me give you a wikipedia crash course.
"Red envelopes are mainly presented at social and family gatherings such as weddings or on holidays such as the Lunar New Year. The red color of the envelope symbolizes good luck and is supposed to ward off evil spirits. The act of requesting for red packets is normally called (Mandarin): Hóng Bāo , (Cantonese): Lai See. A married person would not turn down such request as it would mean that he or she would be "out of luck" in the new year. In keeping with Chinese customs, newly wedded couples are also usually expected to be extremely generous with the amount offered in the red packets, so as to receive blessings for a blissful marriage."
Yesterday, after a delicious Chinese New years eve dinner (No, We did not had any cats or dogs. Stop being so Fuc$@%@# racist). Our relatives did what all our cousins been anticipating for the whole night. We were all waiting for the red envelopes. To sum it up, picture below:
So if you don't have any Chinese friends, GO MAKE ONE. I wish everyone a Happy Chinese New Year. To all my followers, I will promise you to post more Epic trading ideas. Trade Em Well everyone. Make it a great year of the rabbits. Peace. Check out your 2011 Chinese Zodiac forecast here (How accurate are they? Beats me, take it with a grain of salt):