The moment I saw the MSFT chart this afternoon it was already down over 4% due to earnings but was bouncing nicely and I felt it should retest the horizontal resistance at 25.77.   Immediately I placed a market order, recalling every time I hesitated I’d be late to the trend and became the bag holder.  Well, amazingly, 10 minutes later I realized I was the bagholder despite the randomness of the timing!   I stuck with the trade anyway but mentally felt defeated.  The stop was at 25.48, a good margin below the 20 ma on the 5 minute chart that I traded.

I resisted my temptation to average down as MSFT slid down.  After I barely escaped the first approach to my stop by 3 cents, followed by a back-to-back hammer/doji above the 20 ma, I finally doubled down, sticking with the original stop and added a limit to sell half at the break-even.  This is my “fire-fighting” modus operandi.

I escaped my stop order from getting hit 3 more times before I had my first relief, selling 1/2 position at breakeven.  And finally it reached my original target during a closing spike out of no where and closing at 25.99.  I left much on the table, but after hours it was immediately back down to 25.83 level so I didn’t feel so bad.

Given that I was in a defensive mental state off the bat, I think I did OK.  Without the tribulations, I’d have been more aggressive in terms of letting some shares continue to run.

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2 Responses to MSFT

  1. Javier says:

    Hi Fulltimetrader,
    I really like your Blog and I want to thank you for your hard work. It is very helpful.
    I know you have posted several times about the SI (Secret Indicator), right now is it on buy or sell signal??? Do you have Facebook or twitter to follow you??

  2. Hi Javier,
    I’m glad you can make use of some of my postings. Much of this blog is really for my own mental therapy. lol. I do have a twitter/stocktwits account under fifty2weekhi, but I am not dedicated to tweet anything. As for the SI, I am not at liberty to discuss it as it is not my intellectual property. I’ll follow up w/ email.

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