I learned a new lesson. I was wondering if i had really screwed up anything. i thought, and i thought, and i thought. nope. everything is fine. just a new lesson, which is really good. I was stopped out of two trades on thursday, SIRO for a 3.7% loss and PDCO for a 6.4% loss. Both triggered my stop loss orders after large gap downs and both immediately retraced back up above their 20 ema's and completely filled their gaps. PDCO gapped down a ton. At first i was really dissapointed to see PDCO, which has trudged up for a while now, tank on me. i was thinking maybe i should switch back to index futures again, to avoid this craziness. but no. i should just have a mental stop instead of a sitting order. having a working stop order makes you a sitting duck for market makers. stop orders dont help at all when there is a huge gap anyways. out of all the trades that i have made, a working stop loss order has never actually "saved" me. any time i have exited, i could have just exited on my own for trivial small differences. in the end, a huge quick move is unstoppable so a working stop loss order is pointless if you check your positions regularly. huge quick moves usually retrace immediately too. for the record i took the two losses but i also got back in to keep following these moves. no more working orders for me.
i entered GOOG for a short trade that interested me. just curious to see it push up to a price level on its daily chart. not in my normal trading routine.
i want to see SIRO and PDCO continue on with their moves.
No comments:
Post a Comment