Today’s guest interview is with David and after discussing what he looks for in his scans, we go over one of his trades on FSLR using the 2 minute. David sets his order well below the first two candles but it brings up the discussion of is this really a rubber band that is stretched? The answer is no because it consolidated for 1 candle. As we scroll to the next candle we see that it completely collapses another 2 dollars. David has entered/averaged down twice now since the inception of the trade. As we speak more he just is continuing to add to this loser. While he had intended to only accumulate up to 1000 shares, he is now at 1400 shares as the price continues to collapse. Clay and David get into a good discussion about how to properly increase share size as you get more confident. David increased his size 100% unfortunately on the day of this trade. After going into loss mitigation mode, he does manage to get some shares off and reduce his average price but he still intends to add if it goes against him. David still hasn’t put in a stop loss but mentally he has admitted defeat. He does eventually peel off everything keeping his loss around $1700. We see that this was a wise decision as the stock continues to collapse into the end of the day. It is a costly lesson but a lesson nonetheless. If he went from trader to investor, he would be down almost 20k.

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