I’ve mentioned before, psychology has everything to do with trading. That’s why there are advice to trade only in the morning, to stop trading after 2-3 losing trades, etc. The same goes with my current portfolio value. I am not confident right now because my trading account is at the lower end of my normal range. I’m afraid to be bold on my own device. As such, I decided to follow those who’s had a good track record. Of course, it had to be someone to post trades in real time.
Today I followed bearcharts who has repeated shorted my “investment” long position, AONE, and came out on top every single trade. And many of his entries were premarket and were remarkably right-on, often to the pennies from the top/bottom. Today he shorted CREE premarket as he twitted: “shorted CREE above 42”. I was a few minute late when I saw his tweet and my initial position was 42.61. From then on the rally went relentless. I nibbled as my positions were small. Then I started becoming uncomfortable after amassing 400 shares and CREE broke the 50 DMA resistance of 43.28. bearcharts unprecedentedly doubled down at 43.38. I became a bit bolder and began trading around with larger positions (a.k.a. fire fighting mode). That reduced the losses a bit, but eventually I had enough and exited after CREE held the 50 DMA for so many hours. I lost about $300 in CREE. As jinx would have it, I am pretty sure bearcharts will eventually come out of the trade unscathed. I had a few minor green trades else where today that helped eased some pain.
It sucks to post the blunders and expose my weaknesses, but I post them any way to vent my frustrations. Others may learn from me, and even use me as a contrarian indicator. LOL.
As such I might as well post another mirror trade from yesterday. The informedtrader.com had been all cash and yesterday issued a long on IFF. I normally enter a position for around $5K. Yesterday out of desperation I super-sized it with 500 shares at $63.27 for a scalp. In the past, there was usually a slight bump as alerts were put out; but as jinx had its way, with my supersizing the price went steady down. I was lucky to double-down at the low, but as my mental state the way it was during fire-fighting mode, I reduced my position back to my normal size after the loss was minimized – back down to 100 shares. Well, IFF then rally till 7 cent above my original entry – there goes my intended scalp. Worse yet, it gapped and ran the next morning and I had to sell my 100 shares so that the whole folly was a breakeven. If jinx would have it again, IFF would now rally without me.
Else where: AONE traded above $6 today. Now that’s major!