Tuesday, October 28, 2008

Oct 27 & 28 - 3 good 1 bad

Oct 27 - Markets were all over the place but was trying to focus on the watch list and all the great picks from Muddy, Market kid, Investorslive and all others.
Had two beautiful short picks HUM at $33.51 and RIGL at $9.68. Hum was a position I held for 3 mins and got out for a quick scalp and RIGL was one hour before close and it was a GOTS call and that was a 1 minute position. I love these (when they are right). Of course had I held on woulda/coulda/shoulda made an easy 1k for the day, however I was content to be in the green at the end of the day.

Oct 28 - Another great day for shorts in the morning sessions, even though the DOW opened up 200+ points and ended up closing 900+. DRYS was the short play this time, held it for 8 mins and got out for a quick $175 bucks and again woulda/coulda/shoulda held on, coz I left about 500+ on the table. I was still content. Now comes the bad move, so into the last hour and markets up 600+ points and here I am looking for a short, and I am looking at FITB and it was at a hod of $10.15.
So I watch it for like 10-15 mins and I am thinking this thing is just not taking out the hod and I see a fake drop from $10 to $9.93. I jump in at $10.90 and what da ya know, it pops back up. So now I am down about $50 and thinking 'c'mon, c'mon drop a bit and give me chance to get out', but it does not. All I could think of was I was up in the morning and here I am trying to give it back.
Well I did give it back and another $20, so ended up being down for the day. And the lesson learnt is,
1) when you get into a position and if it does not go in your favour quickly, get out. Listen to that inside voice and don't depend on 'hope'.
2) when you are up for the day, take only positions that are more than likely.
3) try not to go against the market trend (unless its obvious)
4) take smaller positions if you are already up for the day.

I don't regret taking the positions in FITB but what I do regret is not listening to that inner voice.

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