Today the market breaks out, with Dow leading the way, Nasdaq breaks out too. S&P 500 breaks out. Only Russell 2000 is within hair distance of break out. There is no use to argue the tape and the fundamentals. I sold all my positions except URZ and some puts and QID in my rollover IRA.
- I'm out to have a clear mind, to be objective again.
- I was bearish since last November, it costs me lot of money.
- The only thing good about losing big in option trades is, today I didn't feel much pain to sell these ultra short ETFs: MZZ, QID, SDS and TWM.
- I will honor my rules of cutting loss in the future.
- I will not rush to get back to the market. I need time to clear my mind too.
- Today, no question, the market breaks out. Now a small pull back will be bought again by bulls and shorts alike. Unless we have some very negative news to bring down the market.
- Dow 14000 is only 140 points away, and Dow was up 280 today. You have to think S&P500 will break 1600 soon.
- I will look for a better setup for shorts, if the market continues to push up another 2-5% without pullback.
- Meanwhile, if the market pull back 1% or less, may add some longs.
- This is a lesson I will never forget.
2 comments:
I am in the similar situation as you. The time and effort and the money lost just not worth it. I am thinking about going to let other people (mutual fund) take care of my money. A MBA and a MS in Finance from top school does not help in terms of trading. I declare defeat from this market mania. I will, however, continue to watch the market.
Hi Simpletrade:
I am the person posted above. Recently I have been thinking why a person like me that would not even go to casino to gamble would gamble off so much money in the stock market? Did I think I have MBA and Finance book knowledge? Or did I think the odds are better here? Why did I lose my mind? Why did I think I can do better than people on the street? Why all the knowledge I have learned in school about asset allocation and diversify and buy and hold strategy just was not in my mind? Just because I think I understand economics and valuation better than average? Good that I still have my job and I will work hard in order to get my loss back. I have been watching your blog for a while and hope you can pull out of a stressful situation as well.
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