The market's action on Friday can only remind us of the importance of checking our emotions at the door before sitting down to trade. You follow all the rules, stick with your plan, tighten your stops and hope that you get through the day with little or no damage to your positions and/or your trading psyche.
This is the way my day went:
Going into the day I was short 2 stocks: $FINL and $DMAN and held a small profit in each going in with stops above each at 25 basis points. I also held $EFII, $SNH and $YSI and also had protective stops of 25 basis points for each risking $75 on each position. Opening bell: they (the traders) immediately "ran" the stops on my short positions and the stocks went right back down for what would have been a handsome profit if they hadn't stopped out. The other positions were all stopped out at their respective prices and for minimal losses. Needless to say I was disappointed but not defeated.
After watching the charts I bought shares in $FEXN, repurchased $SNH and went long $FSII and $EROC. I had owned all of these stocks previously, was familiar with the chart action and liked all of them so was comfortable buying them back today. As always, I'll place and respect my stops to get me out with little or no pain.
So, I'll be back at my desk on Monday, ready for whatever the day brings. I'm comfortable with my choices on Friday and will again have a plan in place and will be leaving my emotions out in the hall where they belong. Best of trading to you all...
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