I finally really f-ed a trade up. It was a $1500 loss. It should have only been a $1000 if I had gotten my stop in on time. The stop should have been at 72 and I got out at 72.30 instead. This is the first time I really blew a stop loss order. Now I am back in the red for the month and my head is spinning. Maybe I should go walking in the rain? It is raining hard here right now and my head is not clear. Damn-it.
3 comments:
Omg I'm sorry to see that.. only 30 cent blow up mean 500$, thats so bad.. I hope you get your head cleared out..
BTW what is it with the stock market lately? can't my position(swing) stay up? yesterday they bounced up, and today they already dropped all of yesterday's "profit" hehe, seem like it's going no where..
Denarii,
It looks like you kept throwing good money after bad. Do the red lines indicate you kept shorting more and more on the spike, culminating in a 500 block short? Timing can be tricky, and maybe I'm too conservative, but my best trades tend to work right away and only then do I start piling more on. Not the other way around, which can burn you. Just a thought.
-BD
Hi, Denarii,
Shorting opening spikes is one of my favorite plays. I may be wrong but here're my thoughts:
Crazy stocks could spike up $1 or a few dollars in seconds, easily, especially so at market open when you have all the idiots using market orders.
First I feel you should double up a lot more slowly - I usually double up for every $1 it goes against me.
Second I think a stop in this kind of situation is almost always wrong. This kind of spikes rarely hold. They're caused by panic and panic never lasts.
I've played a lot of them and I speak from experience. I once shorted SGR after it got a China contract. I took a loss of $600 because I went in not knowing the news and I felt it wasn't a responsible trade. I would have made $600 an hour later.
I wrote about the setup here:
Opening Spikes
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