Thursday, March 27, 2008

never fails...

the uncanny likelihood of a stock dropping directly after a retail trader such as myself purchases it can also be applied in reverse. today, for example, i decided to cut my losses on etfc as i think the recovery will take longer than i first expected and it may test the mid-low 3s again. i got out at $3.94 15 minutes ago. the stock hit $4.01 about 2 minutes ago. that may not sound like much but with the position i had it would have been an extra $280. you win some, you lose some.

i began reading high probability trading a couple months ago, then stopped for whatever reason. i recently picked it up and started over and it's getting me back in the trading mode again. i can't say my decision to cut the loss on etfc was the high probability trade as i missed that about a month ago, but i'm flat now and it gives me a chance to put together an action plan and trading strategy to get things right again. my trading account is back at the level where i started six months ago, which i guess is a good thing if i'm understanding marcel link's philosophy of "trading tuition" correctly. at least i haven't completely blown up.

when i can break away from my new addiction i'll develop and post my trading plan. i think rule #1 will be no video games during trading hours.

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