Tuesday, February 1, 2011

today's weakness

I bought AIG after noting a 3 bump support pattern.  I bought, set a tight stop -- waited... stock began to break out.  I grew fearful since the move took a while to materialize and didn't want to get stopped out.   The entry was correct and I gave up 1 point upside.

I bought AMSC -- based on volume / ER positive guidance.  Waited for pullback. Entry was okay.  Stock stalled and I sold before it hit my stop.  The stock did indeed pullback through my stop but eventually ran .80 from my entry.  The stop was a bit too tight and I was far too fearful of  getting stopped out.

I bought CYOU yesterday and sold too early and did not hold through strength.  Stock ran 5 points beyond entry. 

The fear and lack of confidence is costing me big gains.  Meanwhile, I patiently sit on losers.  I got out of SOL  for a gain but first took a large drawdown with no plan. 

I feel comfortable daytrading as I don't have to hold overnight.  However, I need to be able to let winners run and let go of the fear.  The plan is the plan.  My losses are always contained but I still don't want to lose.  I need to accept losing so that I can allow winning big.  

The other thought is to accept what you see.  Strength pays -- strength always pays and a trend follower must follow.  Accept what you see.  Allow the market to call direction.  Ride the wave without emotion.

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