AVGO stock | Lessons learned

Lessons learned from my loss: 

AVGO stock $500 US dollars loss in one day

1. Do not chase high 
2. Once I did a stop loss on a trade, do not chase high and get in again. There is always better setup on another stock another time. 
3. Set maximum loss on one stock and one day. Maximum loss is $200 US dollars
4. Learn how to short using AVS. 
5. Determine the trend using first 5 minute downtrend K line. Do not bet on wrong direction. 
6. Set stop loss properly. Always put stop loss on bracket order
7. Do not trade more than 3 trades on one stock in one day. 

Risk analysis

1. Instead of buying the dip, I should purchase AVS shorting the stock 1x bear
2. Risk analysis, there is a second leg with the first 5 minute K chart length. In other words, there is still in downtrend. One leg or more. 
3. Risk analysis - chasing short rebound and then cut loss - too many trades in short term, short uptrend - lose money to cut short
4. Risk analysis - multiple stop loss trades - Only one stop loss - otherwise always start lower price
5. Think about instant same day rebound before the market closes - Hope and wish is not a good habit
6. Start fresh - swing trade - Need to keep max loss in one trading day $200