HUmpDay

September 2, 2009
How to trade stocksbows-opengraphTrading-Watch-List

Yesterday was an intersting day. Like so many times in my life I was caught with my pants down. After the silly report yesterday I was for sure we were going guns blazing……..WRONG.

Dow: -1.96%Nasdaq: -2.00%S&P 500: -2.21%Russell 2000: -2.45%

I took losses at the end of the day for the first time in 6 weeks. I almost had forgotten what it was like to lose.  Not because bad stop picks though for I do not make mistakes. I took losses because of ego, bad trademanagement, and an untimely #2.

Let me take you into the mind of messed up trader:

Kunal00 buys $scln at 4.95—-scln goes to 5.35 in 10 minutes. My risk on the trade was 5 cents. So I had a 7:1 r/r ratio which is very very good. Kunal says to himself “thats only 7% i cant say boooooooooom” so I keep it and and up selling for ten cent profit. Not good trade management

Kunal00 buys $edap 4.35 for a little scalp. Goes to 4.55 in 10 minutes. Kunal says to himself “thats only 5% I cant say boooooooooooooooooooooooooom”  Now Im down a couple pennies on this thing.

Dont even let me tell you the story of how I forgot to set a stop loss and went to take a piss and my number 1 turned into a number 2 and I sat around reading vogue for ten minutes.

All in all I sold some $heb $yrcw for some decent gains but took losses on $luv(-6%) and some other b.s. names. Oh well….you slam your dick in a drawer your bound to get bruised.

Im not a big buyer here at this level as I see no huge edge. At least for swingtrades.  We get another big down day and I will start making moves.

Keep an eye on $uso it is very stretched traditionally when it gets this oversold the last 6 months there has been a nice snap back.

Subscribe to newsletter
By subscribing you agree to with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Share