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Harley Meyer wrote:
>
> I thought I would try to send this while the trade was still some what
> fresh in my mind. As many know I had been spending some time watching
> Yahoo. At some point my "intuition" told me that $68 was it here a week
> or so ago and had close my long position and left my short position. It
> seemed that I was siting here waiting and watching for an opportunity
> with Yahoo.
>
> I had heard that Ralph Alcompora had suggested shorting TDW several
> weeks ago. A person I could at least trust a little. I first noticed TDW
> near $49 and and watched it drop to $42 near the bottom of the channel.
> I continued to watch it rise back up to $49. I took my first (last Wed.)
> short position of 50 shares at $48 and then the next day another short
> position at $45 1/16, another 50 shares. I picked up another 50 shares
> at $45 3/4. Total 150 shares at approx. 46 1/4. There were several times
> I thought and just about did cover my short position. (I had done this
> before in the past making a small $75 gain and then two hours later see
> the price drop by 2 points on 300 shares.) So I had been there before
> (experience) and my trading system had not given me a daily sell signal.
> On Monday it had even gapped up and moved to almost 46 1/2. I was
> showing some patience (maturity in my trading). The price later
> collapsed and I covered at 42 15/16.
> I am disappointed in the sense that I could of waited for a much larger
> gain. I did jump back in and picked up another $40 so my entire gain was
> greater than $500. I at least felt fulfilled after the $40 gain. I think
> I would of been frustrated if I had less than the $500s. I guess I
> needed the mental victory. I have taken one step forward in my trading
> maturity.
>
> The one thing I noticed was that the doorway that has greed on one side
> of the door frame and fear on the other side of the door frame seemed a
> little wider this time. I also noticed that as I began to struggle with
> the idea of covering when I did, I didn't stick to watching the
> indicators. At some point the fear of losing this nice gain, clouded my
> judgment. As time goes on (experience), I hope to continue to mature in
> my trading. I will say that getting back to the gym and working out, as
> well as my weekly commitment to studying technical analysis, is helping
> me get my head back into trading. I just need to pace myself, to be
> patient and to continue to adjust my life style to nurture my trading
> abilities.
>
> Harley
1 - Don't trade to be right. What you label mental maturity hid a true desire to
be right nevertheless.
2 - Trade your plan. Where was your plan? It should be laid out before, so you
don't have to think about it midway, and start listening to all these greed and
fear voices leading you off the trail...
3 - Whatever you do, and however you do it, be systematic and consistent.
Any other way will give you a few lucky gains, and most of the time, losses.
4 - Make sure you are consistently applying something that is indeed profitable.
Hit and run on a small short is OK, if you know what you are doing. Know its
drawbacks, and plan in advance for handling these. Here you were hoping, not
trading. In the long run, it is going to hurt you if you don't plan for a
profitable war strategy...
5 - Whatever I said, don't believe a word, and verify yourself. I don't need to
convince you, but you may need to convince yourself.
Gwenn
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