How did you all do? Today was take a loss type of day for me.. :( But despite that, there was some good news too.. So I hope some of you made money too..
Anyway here are the updates for today.
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FKLI 30 Mins Chart
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FKLI Daily Chart
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Cash Index Chart
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Looks like the Cash index just fell without a floor to support it huh..
Alright we traded to these following levels today:
FKLI
Opened: 1545
High: 1547
Low: 1522.50
Closed: 1524
Cash Index
Opened: 1558.25
High: 1558.25
Low: 1535.05
Closed: 1536.04
As I mention, today was a down day for me. I had held longs and got married to my position from yesterday. I was long in the low 50s and price went against me that day. Instead of closing the position, I somehow manage to convinced myself that things may get better the next day.
Now, most of you also know that, when you start to talk like that to yourself and justify your position like this, you know something bad is going to happen. And today, it did just day. We opened lower in the futures. After cash opened, that too came down lower which push price much lower. I took the loss and soak up the pain.. I'm wrong and I got out, which I'm glad, as price just decided to puke further and went as low as 22.50 in the end.
Taking the loss when you are wrong is a good thing. But there was one thing I could have done better.. If I were not married to my position and thinking rationally, I would have placed a sell stop just below the price before cash opened at about 40 level to cut and reverse. But sometimes, it is not easy because your mind is still in the frame of thinking that things can get better.. all because of the convincing argument I made to myself of how price will go back up and etc..
I just wanted to point out that thinking and justifying a bad position more often than not turns out bad in my experience and I'm sure its the same for you too in terms of trading. Trade what the chart or the tape tells you.. not what you feel or think is right.
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One of the thing that turned out great was.. after taking the loss, I decided to sit on hand for the rest of the day not trading anything.. I wasn't in the right frame of mind and I don't want to compound my mistakes further. The loss we can earn back next time. But if I still traded in this confused frame of mind, more often than not, the ending isn't so pretty again. So I did the right thing.
But the kicker was, one of my trader Teo did a bold move today.. when price touch a low of about 28-29 and rebounded to 35, he had the guts to short there nearing the end of the day... right after he got in, price puked and made a low of 22.50.. that brightened my day a bit.. I'm glad he's so brave despite the earlier loss I caused..
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So.. that's it for today.. tomorrow is a brand new day.. new day, fresh start.
Goodnight folks. See you all tomorrow morning. :)
Best Wishes,
Tech Trader
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