an apple goof I did

W

whitetanman

Hello guys,

Did a short of apple at 148 this morning (was just going to be an hour or two, but I actually expecting a downer day). I got called out of my office for an emergency and forgot the stop loss.

It's at 153.60 and still rising at this moment when I got home. Think I should just take the hit, or will this probably relax in price in a few days?

Just your best guess, of course.
 
Quote from whitetanman:

I got called out of my office for an emergency and forgot the stop loss.

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Now be honest, did you really "forget" the stop loss or didn't expect to need it?

Either way, I'd get out now. You shorted it expecting to go down, it went up, get out. You'll think much clearer once you are out and you can always re-enter.
Ask yourself this, would you short it right now, as a new trade, if you weren't already short?
 
lol... Yeah I can understand your thinking.

I don't use stop losses because I'm here all day, not even leaving my desk for lunch so just not a habit to do. Not a valid excuse, as I should be doing it anyway

But you're right.. I wouldn't go in short now, so done and done.

Thanks
 
Quote from whitetanman:

Hello guys,

Did a short of apple at 148 this morning (was just going to be an hour or two, but I actually expecting a downer day). I got called out of my office for an emergency and forgot the stop loss.

It's at 153.60 and still rising at this moment when I got home. Think I should just take the hit, or will this probably relax in price in a few days?

Just your best guess, of course.
More...

Back in the old days of '99-2000, I had a method for dealing with this that worked well. I would wait for market open, and then for the stock to trade and close a five minute bar. On a break higher (since you are short) I would immediately close 1/2 the position. I then waited for the 30 minute bar to close. At 10 o'clock EST, I would set the second half to exit just above that 30 minute high, then everything is taken care of, stops are in and forget the trade till the end of the day. Simple method; pretty good results overall.

Btw, only short those double tops on the way back down from now on... :) Good luck.

Oh, one final thing. This isn't a really good time for what you are doing, since the end of quarter window dressing is upon us and funds will likely be long this and wanting more to boost their numbers; sucks I know but I just throw it out there. If it were not the last few days of the quarter I would say you have a good chance. This fact makes it a bit dicey but in the end, who the hell knows??
 
Quote from whitetanman:

or will this probably relax in price in a few days?

More...

The price just left for vacation and is relaxing now on the beach... :D

AAPL is a momentum stock and you are clearly on the wrong side of the trade. I would just cover it ASAP as others suggested. I don't expect any let up because it's the end of the quarter and the big boys are painting the tape or doing window dressing right now.
 
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