Tuesday, January 3, 2012

ripper trend down

market gapped up huge but it was actually a trend DOWN day intraday despite TREND UP day internals.  Thus -- selling the open was the right call.

 I sold STJ/HAS which both closed lower and got out of DWA after a bounce instead of selling the open.  Easy money should be taken because there is no easy money.

 Stocks like GDXJ -- were up 3 points from my original entry last week.  Biggest problem is being patient.  I took the heat.  Take the reward too.  The market will mean revert and you must trust yourself and the mean reversion process. 

I did not trade futures although I made a few nice calls.  It was hard to go long since most of the day was trend down.  So patience is okay.  There were big moves in commodities/ferts.  Trust your valuation process. 

Probably 90% of my buys end up going green but I probably sell half for a loss.  Think about that.   The key is to keep position size smaller to hold on.

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