The only saving grace was the profit I took from GE. As I had anticipated, GE rebounded from inverted-hammer on a big volume day. Although my timing for the sale (like my timing for the purchase) could have been better I am glad that I realized the gain. GE has gained 33% in the last 3 days and the likelihood of consolidation is greater than another break-out move.
On the "day trading" side of my business I still have not made money on GOOG. I used to trade GS and I had a very good track record until a mistake by Fidelity system and a rep made me so upset that I decided switch to GOOG. Anothe reason was that higher share price of GOOG lowered trading cost.
(a) Shorted at 300.15 and had to cover at 301. Basically, I was calling for a reversal after a big inital rally in the morning BUT instead got swept up by the up-trend move.
(b) Shorted again at 302 but had to cover at 303.8. My thought was that 302.5 was forming a resistance and put stop at level higher than higher resistance (303.5).
(c) Shorted again at 303.26 but had to cover at 304.28. My reasons were that there as resistance 303.5 and 304 was the stop-loss but because of order-flow reasons, I got covered with a loss. I WAS PROVEN RIGHT SOON AFTER I GOT COVERED but that was no consolation for bad trade.
The bottom-line is that I need to be vigilant about the risk-reward ratio of my trades. There are couple of problems with my GOOG trades (a) not assessing risk-reward ratio properly i.e. being emotional and NOT being PATIENT (c) kind of getting lost in the direction of the moves (3) not putting stops properly. to try GOOG.
Another problem for me in trading today has been NOT being able to gauge the movement of the market. Given the strong start in the morning, I was counting on it to reverse. I was betting that GOOG would also do the same i.e. reverse BUT that bet never materialzed and got stopped before accruing losses. I should realized my mistake and waited for stock to consolidate.
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