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Saturday, May 28, 2011

The previous day's low

MCom was a beautiful setting on 6 June: I went to the previous day's high and vice versa, after a dramatic two-day preparations. I shorted at $ 36 and $ 35.50 and set a protective buy stop to cover the swing high. After lunch add another 200 in short $ 35.31. At the end of a frustrating thing happened: I covered half of my position about 20 minutes remaining, but then tanked last bar full $ 2 cover my $ 33.13. It was boring. The worst yet to come however. The next day, June 7, I think the price will test the previous day's low and waiting for me to cover my second half of the $ 30.56. It did not happen though and prices, rather than protesting. I think it's just drawing a little bear flag and the price will fall back to lows. So I did a stupid thing by adding more short 200 to $ 34 for the "poke" tape, which does not reverse, and the price immediately proceed upward. I had to scramble to cover more than $ 1 loss, accident cover 250 instead of the 200th I felt I was out of it, "the tilt" so to say (fellow poker players will know what I am talking about ;-)), and mismanaging the second half, so I just covered the remaining shares at $ 34 for a small profits. In conclusion, I had to come into the day expecting to cover 300 shares for about $ 5 and ended up netting a profit sufficient for a particular meal at Burger King. As they say, "going short."

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