Trading Journal - May
- Thread starter Seanote
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Originally posted by moffitt
Seanote
I'm confused and don't know what to do... They are up 200
and I can't get myself to short a strong market. Nor can I get myself to buy something chasing it up. So I sit on the sidelines
feeling like a dope. Is there a cure or advice on a day like today????
That's not always a bad thing! Today is very difficult to figure out. He would have thought QLGC would open up $5 and now up $7. Think of today as a rubber band that is being stretched and stretched. IMO I think that rubber band will pull back and that 's why going short now makes sense to me, BUT it that rubber band snaps (even though there is no technical nor fundamental reason why it should) then that's where you stops come in to play and you take your loss and let the market shake out tomorrow. Think how many traders have been wanting to go long a finally have a "reason" why not to mention all the short covering and profit taking going on. I'm still bearish overall and will TRY to play what the market gives me.
strength throughout the morning, with waves of buying, with narry much pullback. When pullbacks came they were false shorting opportunities, and narrow buying opportunities..
the level 2 weren't even keeping up with the T&S windows whilest the programs were buying without regard to price....
futures activity was very, very strong, as foreign currency monies returned to the markets, as the dollar showed strength relative to the interest rate pictures and other currencies... Yeah USA!!!
can someone do the Florida Dance?, you know the one where the oranges are short squeezed?, because those slow enough to have remained short through postmarket/premarket certainly hade the juices squeezed out of them this morning...
the level 2 weren't even keeping up with the T&S windows whilest the programs were buying without regard to price....
futures activity was very, very strong, as foreign currency monies returned to the markets, as the dollar showed strength relative to the interest rate pictures and other currencies... Yeah USA!!!
can someone do the Florida Dance?, you know the one where the oranges are short squeezed?, because those slow enough to have remained short through postmarket/premarket certainly hade the juices squeezed out of them this morning...
this morning's market showcased Gap Theory in/at its best.
simply put, when your target stock gaps, say .30 then you suspect giveback and if it holds, that becomes the nearest entry point.
whereas, when you have 1.85 gaps in primary stocks across the boards, not only can you not expect much give back, you can expect that the blip hit upon the radars of the Generals (K. Hggerty's expression) and they'll be along shortly...
we had that happen today.
wonder how the OOO's did?
simply put, when your target stock gaps, say .30 then you suspect giveback and if it holds, that becomes the nearest entry point.
whereas, when you have 1.85 gaps in primary stocks across the boards, not only can you not expect much give back, you can expect that the blip hit upon the radars of the Generals (K. Hggerty's expression) and they'll be along shortly...
we had that happen today.
wonder how the OOO's did?
CAN YOU BELIEVE THIS STOCK!!!!!!!!!!!!!!!!
This is reminiscent of the old days, a perfect example of why you don't try to short at what you think is the day high and hold your position if it moves against you. It can be easy to get caught up in the psyche of ......" this stock can't keep going up???" it's already up $6 today, I'm going to average up. That's why a placed my stop and stuck to it even though I thought there was good possibility I would be covering at or near the day high. I saved myself over $4K of additional losses closing when I did. This is why Risk Management is THE SINGLE MOST important aspect of trading. I made a bad call on QLGC and KLAC but I recognize the risk opening those positions when I did and was willing to accept the risk/reward possibility.
This is reminiscent of the old days, a perfect example of why you don't try to short at what you think is the day high and hold your position if it moves against you. It can be easy to get caught up in the psyche of ......" this stock can't keep going up???" it's already up $6 today, I'm going to average up. That's why a placed my stop and stuck to it even though I thought there was good possibility I would be covering at or near the day high. I saved myself over $4K of additional losses closing when I did. This is why Risk Management is THE SINGLE MOST important aspect of trading. I made a bad call on QLGC and KLAC but I recognize the risk opening those positions when I did and was willing to accept the risk/reward possibility.
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