Wednesday, April 2, 2008

Douche trade of the quarter after yesterday

With the markets up 3% on April 1 of all days. That 200 share probe has turned into a $1300 tuition lesson. It shows you how a small probe position can eat up almost .8% of your net worth if you bet in the wrong direction.

This is the negative thing of letting the ego get in the way, as wanting to be right wasn't the best play.

Since this is the second straight quarter I've had a bad trade on the final day of an ending quarter, I should avoid making new trades on 12/31, 3/31, 6/30, and 9/30, until I get my head straight.

Now we're in the position of managing this bad trade, whereas simply holding earlier trades such as AAPL, and X , or even SID would have yielded decent gains.

First off, ignore all the news and Bernanke. Even though you are irritated at that douche and the market reaction, all that matters is what's happening right now.

I'm pretty sure you're looking at taking a chance at doubling down on that TWM position because you don't believe yesterday's 3% up move. 99% of the time, I would NEVER do this after watching a position plunge 8% in 1 1/2 days. Anyway since I'm on semi-tilt, don't be surprised if my next post is buy 300 shares of TWM.

YTD -5.40%

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