Today was not fun.
I'm really bad at selloffs. I used to hold onto loser positions until they were down huge and finally sell for mega losses.
Today was not great. I lost less than 1.5% of my IRA but it felt much worse somehow.
Instead of selling and getting into the safety of cash, I bought a little XIDE and more LLFH which could easily sink to 4.26 (50 day MA). CHIO looks like it's about to fall off a cliff. INSM looks terrible.
My managed account dropped about $16,000 which is a lot of money to me.
Overall, the market did exactly what I thought it would -- big huge gap down and the rest of the day was consolidation only the close was down because the new trend is now pain and more pain. Nobody wants stocks -- and the dollar was even red. That said -- it's pretty damn fucked (for lack of a better word) that of all things... AIG and BAC an GS and CIT were all green when these are supposed to be the problem children. Add to that the overvalued AONE ipo which blasts 14.5% higher. So much for value hunting.
I actually was not around all day but got back on around 12 -- noticed some of my guys talking about YONG -- so I bought some and within 3 minutes decided to sell it (I had to go anyway) and made a fast $230.
I'm sure I'm going to be punished more by Mr. Market but the fact is, I like almost all of the stocks I own. I know there's a big correction coming but I just have no interest in trading every blip.
So there are no jobs in America. Is that the end of the world? Maybe.
I would like to focus more on my technical trading. I had done no research on YONG, I bought in because I checked the chart and instinctively, I knew it was going up. And it just went right up immediately after I bought. I knew before I bought CHIO that the chart was terrible... and sure enough I'm down a bunch on it, even though the people I follow believe in it long term.
So I'm going to focus on making more daytrades while holding my value plays. I think the key is - you have to completely shift your thought process. Value players buy cheap, traders buy trending up stocks on crazy volume. It's hard to do both at the same time.
I am going to add more to XIDE... I think the techincal sign will be the first up day. It could drop 10 days in a row. I don't want to buy it again until sellers are exhausted.
So I'm feeling kind of nervous. Although when I see AIG/GS/CIT all green, I have to wonder if shorts are not feeling a bit worried Bernanke's not plotting some crazy move.
Well... it was a painful week, though not devastating. I'm alive. time to relax... no need to dwell on past mistakes. If you shorted and beat Mr. Market, good for you. The thing with these China microcaps, when they drop, they drop hard, but when they rise... they can rocket. (see: YONG)
Good day to you, sir.