Be strong

In order to become a good trader, you have to be strong and you have to know that losing is part of the game. It's how you handle your losing positions that determine your performance as a trader. I didn't handle this well recently. Since I was wrong last Wednesday, I just held these positions and hoped it would go my way, and sometimes I was scared enough to almost sell these positions. I need to have steel nerve to hold positions. I will sell not because I'm scared, but because I'm wrong, there is a big difference between these two.

1. The market went up again today, which is a surprise to me.
2. The volume is light, indicating some traders are not returned.
3. And twice trading days in a row, we sold off about 0.5% at the end of last 30 minutes, indicating the "smart money" is selling into strength.
4. Dow and S&P are sitting right above the 50MA. A break above is telling people to join the party.
5. All the credit issues are still there, housing market is weakening, economic activity is weakening, and people are calling the bottom is in, Fed will cut.
6. Today several analysts upgraded tech companies like AAPL and YHOO, and the rotation to tech is very strong recently.
7. So what does this market telling me?
8. Rally on light volume, market rise on bad news; sector rotation; selling into the close.
9. I think lot of hedge funds are still waiting to dump shares to raise cash. How can they do this to get maximum out of their positions?
10. September is the worst month in stock market, and we rallied big today on weaker economic news, because people think Fed will be free to cut based on weaker economic data.
11. I think hedge funds need some pumps and upgrades to unload their shares. This is part of wall street operation.
12. And 1490-1510 are strong resistance in S&P500.
13. And my indicators are again telling me it's time to add shorts. But I won't, since I made mistake to be shorting too early, now I need to enter on better price.
14. Regardless what methods you're using, need to be flexible and learn quickly. But most importantly, I need to be mentally strong enough to be a good trader. You make your own luck.