Wednesday, October 21, 2009

First big draw down of Oct.

SPY: O - 109.04 / H - 110.31 / L - 108.15 / C -108.23 / TA - overbought, turning over

For the first 3 weeks of Oct., my trades have been about even. My gain was actually slightly more. Today, I was up $100 until the last 40 minutes when s&p is tanking to the floor. I attempted in reverse scalping FAS and suffered nearly 2k loss. I had a chance to break even on the trade at the first rebound, but emotion took over and I didn't exit completely, and continued the strategy.


What may I learn from this experience?

-Did not have a clue on the Distance and Duration of the move.

-Near end of day, should have been more cautious.

-Stop going in blindly and against the move, instead go with the trend on confirmations of volume and direction.

-Got a bit lazy in studying lately


Positive experience I noticed:

-Break out and trend lines definitely increased the odds of a strategy. It helps to set stop loss too.

-The opportunity to take a break, and write this note.

-The very sunny and cool weather here.

-The experiences that I am having.

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