Tuesday, April 27, 2010

Back to Day 1

Well tommorow will be day 1. The day started off fine. The problem started when I failed to take a $50 profit in a RIMM that I quickly made, shortly after the opening bell. The profit dropped and I could have still made $20, but I did the dear-in-the-headlights thing, and soon it turned into a $50 and then $100 loss.
Then the rest of the day during the sell off and again near the close I did the unthinkable: lowered my stops, several times. The first big bounce seemed like it was going to end OK, but then we bounced again and ended up closing on or near the LOD.

During the late-day bounce I even added a long position in this account because I figured it was a Stewie alert, but I had already played the Stewie alert in another account and didn't need to add more risk to this one. The problem with this account is that it is only 2k and I am down $300 from where I started and constantly fighting to get back. I've got several (option) positions going, also XRTX and LVS from the other day. I figured this week was going to be a blow-off top, super-strong, etc, and THEN crashing next week, but hey what I think doesn't matter.

So now I am in a position where I am "hoping" for a rally (dang) going into the morning. I do think it is possible, somehow I think this whole thing is related to Goldman Sachs and NOT Greece, and is their way of punishing America while their CEO is being interrogated on television. Isn't it funny how the one good trade today would have been to be long Goldman Sachs! In any case, I broke all sorts of rules, from alllowing more than 2% risk on each trade (technically in this smaller account I should only be risking $40 per trade, and if I can't do that...don't trade).. and I am even afraid to look at my rules to see what else I broke. Human emotions are a powerful thing, and I am still being affected. Wouldn't it be nice to be able to sleep pretty knowing that in the absolute worst case, I'd only lose MAX 2% on each trade.. it works nice in theory but in such a small account, again, you need to try to use options and do miracles with them (maybe trade the qqq's a low priced option)-- or maybe trade penny stocks with a tight stop.. or just not trade. Fortunately more money (about 3k) is coming into that account sson so it will be a 5k account.. if I can just preserve the money in there now....

No comments: