Use access key #2 to skip to page content.

SharePlanner (< 20)

The Lazy Trade: Long & Short

Recs

1

July 19, 2012 – Comments (0) | RELATED TICKERS: BRO , FB , MLNX

Typically when a stock goes up after I get stopped out for a loss, or a small gain, I'm not one to care or give it much though. It happens, and will always happen. But geesh, sometimes it's just hard to ignore. Take Mellanox Technologies (MLNX) for example. I bought into this stock after it broke out and pulled back to its breakout point three days ago. All is good at this point, but over the next two days it just drops, and takes me out for a 3.5% loss. That's not what bothers me though, because I expect to be stopped out on a number of trades throughout the year. Yesterday though, now that I was out of the trade, it goes up 7% - ok whatever, no worries, but today it is up 41%... yes 41% - the best trader in the world (whoever that happens to be) can't help but be bothered by that. 

Moral of the story? No matter how good of a trader you are or hope to be, you'll always have to deal with emotions and work hard to not allow them to affect your trading in a negative manner and sometimes - what might've been with a trade like MLNX will bother you no matter what. 

Here's the daily long and short play. 

LONG: Brown & Brown (BRO)

SHORT: Facebook (FB)

 

 

0 Comments – Post Your Own

Featured Broker Partners


Advertisement