A fat finger and a little help from the market reduced the overall loss on this trade. I was placing limit orders in to sell at $4 thinking the morning gap would sustain itself into a rally where I can make a decent buck on this...well it triggered a market order at $3.60...In any case I got out of some at $2.70 and some others at $2.80...
Overall total loss was $750...this doesn't sound so bad except when you think that I at one time was looking at $2250 in profits....
This was a shitty trade in only the fact that I did not get out when the going was good...
I keep saying that I learn this lesson, but it is clear that I have not yet learned this lesson.
Getting out of a good trade is an extremely difficult thing to do I have to unlearn the "let your profits run" shit that is in my head.
That discipline is something I will be employing moving forward by simply taking the profit at 30%....if you think about it most of my positions wind up being about $6000 in size (accross all the accounts)...a 30% profit is $1800...that is well within my realm of happiness...If I can keep my losses to 15% this puts me at a nice 2 for 1 risk/reward scenario on every trade...I can make that better by taking 10% losses...but volatility would create many more loosers for me with such a tight loss point.
In any case, regardless of the situation (except when its Headley and Lang calling the shots)...I will be taking 30% profits on my trades.
I must do this. I simply MUST DO THIS.
30-SEP-10:
Yesterday TSL took another step towards the sun and broke out pretty heftily. It then proceeded to fade into the close. The last hour presented a %R retest. Now on the hourly this can cut both ways. You can get lucky and %R retest holds, or you can watch as CCI painfully gets retested...or DMI or whatever.
MCP was one of those situations. I got in on CCI retest thinking I was high and mighty and boom got pasted.
Anyway enough MCP. TSL is a better trade already...in good TSL fashion it promptly gaped up this morning and has been hovering at these heights since.
The retest on %R has held ($28.84), this actually happened outside the hourly bands...a good trait for any retest. Today it retested again towards the 13 hour EMA...That green line just keep supporting or dissing stocks I love it.
Across all accounts I have 18 contracts of the October $26 calls for $3.20 each.
Let's hope this works out better than MCP..I can make up for MCP with a $2 appreciation in this one...that's like cheesecake for TSL.
Charts:
4hr
1hr
