Asked and Answered Again

I have been asked numerous times why I covered my shorts so early when I was so vocal about a 5%-10% correction two weeks ago. The answer is that I almost always exit my trades too early and leave money on the table. However, I rarely hold on too long. Its a trade off. Everybody needs to adapt their trading style to their personality.

4 comments:

Anonymous said...

Nice point. My objective is 3% a trade. I made almost 4% on TM. Could have held out for more but I hit my target.

Earnings are out Wed for TM. Last 1/4 should be good but worried about lowered expectations because of the recall. Either way I hit my mark.

Anonymous said...

Today's market isn't being batted down like last week's. (I think all but one day, every rally was met with serious selling)

What's your take?

Tsachy Mishal said...

I don't like that there is call buying. The rally is being embraced too quickly.

PJ said...

Yeah, plus it's a weak rally. Hasn't penetrated the support-turned-resistance level at 1090.

I'm looking for trading between 1070 and 1100 through Friday with the decline resuming next week. Above 1090 I'll add shorts; below 1075 before non-farm payrolls I'll reduce shorts. Also looking for mean reversion opportunities between sectors, as people do a lot of rotation this week.