NEW YORK (TheStreet) -- Friday, 6:30 a.m. PDT. Over my morning coffee I opened my trading account, brought up my charts and analytical tools and there it was, the perfect bull stock.
It was lower in price and in trading volume than I normally trade (only 37,000 for average daily volume). But what the hey, I decided to take a bit of a risk with it and bought in. There were too many bullish signals for me to pass up the opportunity.
Friday was an extremely busy day full of many meetings and other activities that precluded me from sitting in front of my computer all morning and afternoon. This was one of those trades where I was going to have to place it, set my stops, and check it when I could, if I could, from my phone throughout the day.
I set my stop order 1.5% below my entry point of $7.99. After entering into the position, my day was so chaotic that I was not able to check the stock's progress, which turned out to be a blessing.
Checking back at around 12:30 p.m., just 30 minutes before the market closed, I found that SGMA had risen to roughly $8.20. Happy to have made 2.9% on a stock I barely had to manage, I wanted to realize those gains ASAP. Then I noticed that every signal on the stock was still in "Raging Bull Mode." So I let the day close without exiting my position.
A few hours went by and I decided to check on the stock in after-hours trading, only to find it had gone up about 11% from the closing price of $8.22 to $9.17.
At this point I couldn't contain it anymore. I had to realize my gains, so I sold in after-hours trading and made a total 14.77% on my trade.
Trading is very much an art and managing your emotions -- knowing your psychology -- is of the utmost importance. One of the most damaging things a trader with a personality like mine can do is watch a stock's every tick.
The best trades are made when they're not forced or made under a microscope. Watch closely and be specific, but don't over analyze. Trust your gut and trade on your indicators, not your emotions.
I can't wait to share with everyone in the upcoming weeks this fascinating new tool I discovered that helped me find this amazing bull of a stock.
In the meantime, happy trading and I wish you
Many Happy Returns,
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.