Mirroring Someone Else’s Trades – A Sign of Desperation

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.

The market has had 3 days of rallying and looking to break the downward wedge.   I added to my TZA position.

Else where:  AONE traded above $6 today.  Now that’s major!

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