Trades from Thursday, issues w/ objectivity
As the title alludes, I closed half of my positions in SBIB and HOTT on Thursday (but did not post here) and I am also struggling with objectivity. First the trades: Thursday morning started well, especially given the FOMC-initiated rally Wednesday afternoon. Both my trades neared their Target1's and I sold half the positions. Trade details below.
SBIB: Sold12.59568 shares @ $12.009 (transaction took way too long, suffered some slippage)
HOTT: Sold 14.45898 shares @ $10.472 (again, major slippage)
Although I did suffer some major slippage, both trades were not even at their Target1 prices. I choked, locked in profits early at the expense of the continued rally seen today. This is where the bad objectivity comes in. On both these trades, I set lofty targets and tight stop losses. Given I was stopped out on both TYC and SMSC recently, I began second guessing my stops. I even let SBIB blow through my stop early Wednesday, thank god the FOMC saved my butt.
I don't know what I am going to do about this. On one hand, taking profits early is not big deal. I still let 1/2 the position run with a 1% trailing stop, so I will capitalize on any continued strength. Not acting on intial stops is a different story. Once I set a stop, it must be honored at all times. Either the stock is failing or I placed a bad stop, either way, I must sell, re-evaluate, and move on to the next trade. That is the only way to stay objective.
I'll post any decisions I make. I may look into historical volatility to get an idea of expected moves, or go with looser stops. If the set-up is good, the stock should appreciate and stops won't be of consequence, but if the market tanks, the set-up fails, or something else happens, I must get out.
For now,
Masterjaz out


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