In the post: "Sir, I Want to Trade in the Stock Market" I have explained the importance of the emotions of stock traders. Now I want to share my experience with you, because I am also a stock trader (although there are stocks that I keep for the long term). Why do I dare to write about investors' emotions and at the same time state that they are important? Because I've experienced it myself. Yes, I've been hit by a force sell. To understand the force sell and force sell mechanism, please open the post: The term Force Sell in the Capital Market.
Well, in my experience, I was hit by a force sell when the stock I was holding was still going down in price. This is sad.
I've actually found my own way of using technical analysis to trade stocks that I can earn. But I've had the experience of being hit by a force sell. I once bought Aneka Tambang (ANTM) shares, at a price of 1230. After a while, the price fell again to 1,125.
Because the price dropped again, I immediately lost control, because I saw the price continued to fall. I did not cut loss, and bought ANTM again in a rather large amount at the price of 1.095. My hope is that I can get a lower average price, so that when it goes up, it's easier for me to earn money when I sell.
It turns out that the stock price keeps dropping.... I'm already starting to regret it because I didn't set a cut loss. I should have made a cut loss at 1.150. I have observed that at that time, ANTM could not stand the support at 1150. I want to set a cut loss at 1.150, but I can't control my emotions. I hope too much to get a lower price by buying ANTM again at a lower price.
Because it was out of control, I didn't realize that the funds I used to buy ANTM again at a price of 1,095 turned out to be borrowed funds from the securities office. Actually, there is no problem with borrowing, as long as it can be returned by selling our shares in less than 1 week. I already know that this ANTM probably won't be enough in a week. The price has been steadily falling. In total I have about 40 ANTM lots.
After I didn't monitor ANTM for a while, then after I monitored it again, it turned out that my ANTM stock was only 19 lots. "How come, even though I've never sold my shares, how come I can sell them myself"? I think. I was confused and panicked, because half of my ANTM shares were sold at a loss at 925. Even though I got it at 1,095 and 1,230, which on average, I still got the average price at 1,162.5.
I try to check my email, because if there are shares that are bought or sold, the securities office always provides an email, in the form of a description of the shares purchased, along with the lot and amount. When I checked my email, I didn't know I opened an email from the securities office yesterday stating that I must immediately sell my shares or add funds to the amount of the shares I bought until 2 pm, because the funds turned out to be loans from the securities office (amounting to 1.095 X 19 lots X 100 pieces X purchase fee 0.17%.
Then, I checked my email again, there was another new email stating that my shares had been force sold. I was late to open the email, so I was hit by a force sell in a loss. But, it's all my fault. I buy stocks without paying attention to my remaining funds.
I had mixed feelings at that time. Had thought to stop trading stocks. I didn't even monitor stock price movements for a few weeks because I was in shock. I was in shock and I still can't believe that I was hit by a force sell. Because this is the first time this has happened. But the loss that I experienced, is not a reason to give up. Even though I was in shock and thought to stop trading, I slowly reflected.
Want to know why I got a force sell? The answer: because I forgot to control my emotions. Yes, my emotions as a stock trader. When I bought ANTM's shares, the price of ANTM's shares decreased. When experiencing a decline, that's where emotions are less controlled.
I bought ANTM's shares again in quite a large amount, with the aim of getting a lower average price, so that if I sell the shares, it will be easier to buy. I've got a cheaper average price, but the stock price hasn't gone up. And I know that this stock price will take a while to rise, and it turns out GOODNESS... I forgot!!!
I forgot that the funds I used were borrowed from the securities office. I'm not aware. I bought shares, but I forgot to check the position of my funds, and the funds I used turned out to be borrowed funds. Because of the desire to get a cheap average price. I didn't check my remaining funds. Suddenly, after five days, I was immediately hit by a force sell. I only realized when I checked my portfolio and I sold my shares even though the price was dropping and I ended up losing.
Is it the security office's fault? Is it the market's fault?
The answer is No. All is my own fault. The mistake of "forgetting" to control emotions. Because I also had a bad experience, suffered a loss because I couldn't control my emotions.
So, if you are a trader, a technicalist, controlling emotions is very important. You understand technical analysis, but are unable to control a trader's emotions, so you will lose.
