Wednesday, June 22, 2011

Dolemite waves the white flag...

Well ladies and gents, this is how it goes
I've always been a much better analyst than trader.

After being so so right last week and murdering it on every turn of the market, this week has been a total 180. A good trader would've maximized last week and would've cut all the positions I had this week off days ago.

I however, got out consistently early last week when I was right, and held on to and added to everything I was wrong on this week.

Now I am flat all my positions, all of my profits from last week, and full of self loathing..... ah the joys of trading ;)

Good luck out there and I say this to you all as a lesson of what can happen when risk and money management are blocked out by arrogance and greed. This is the number one rule of trading, one I have never been able to get down.......

15 comments:

  1. Thanks for sharing that story. As a fairly new investor I've had two hard slaps in the face over the last 6 months of trading. After the heat of the moment (stuck in the trade) I've traced my stupid decisions back to greed and stubbornness.
    The white flag is good to use.
    Great site.

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  2. hang in there bro you did a great job the last couple wks. are you still looking to short at the next fibo levels on the spx or are you waiting to go long on a retracement?

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  3. New reader but really enjoy your insights. Great work I think. I always take half my profitable position down when we hit resistance and move stop to BE, but believe me i've been there.

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  4. you nailed that retracement last wk on the spx and made a great call on oil as well. you may not have traded it perfectly but your analysis was spot on....you still looking for more downside? what levels on the spx are you watching to short again?

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  5. Thanks for the kind words guys
    I will put some charts and opinions this afternoon after the Bernank dog and pony show finishes.

    No thoughts on anything right now
    Good luck with this if you have stuff on.

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  6. Your calls last week were amazing. Everyone hits a wall. Dont get down on yourself.

    Your charts and analysis are really helpful. Thanks for taking time out to do this.

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  7. Im still holding onto my silver shorts. Looking like it is ready to head back down.

    Does anyone else see a liquidity crises brewing? Europe is deep in it. And now Chinas interbanking rate is over 5.5%.

    So the question is. If liquidity drys up. Whats the play?

    Short financials, SPX, commodities, long the dollar?

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  8. Brave statement

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  9. yeah, i must be crazy but have this gut feeling. Too many people saying the same thing. Im in the jewelry business and diamond prices went up on all carat sizes just a few days ago. That wierded me out even more cause that rarely happens. Im just not believer right now. This reminds me alot of the tech and housing bubble.

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  10. This is not a technical statement. Just saying how can this shit house of cards stand with no perceived support from the fed, other than the rollover stuff? I think we will see a rapid descent, but I will put my feelings aside and obey price.

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  11. thx also, dolomite, for mentioning the oil strangle. I dumped my puts near the bottom, and did what 'the book' tells you to do and hold onto the calls, but they're so far in the weeds I saw no point in it and dumped them too. Nice trade tho.

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  12. did you find yourself on a long walk wondering wtf went wrong?

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  13. Dolemite (and Sandwich),

    Love the site. Thanks for your honest assessment of the week, even though it didn't go all that well for you. I will watch for arrogance and greed in myself. Look forward to reading your future posts.

    Ozzy

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  14. good luck bro, good advise!

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  15. lix - gl on those puts
    blister - glad you took my advice on one of the ones I had right
    smpl (BDub) - ya today was one of those days for sure
    Ozzy - All the knowledge in the world is meaningless if you get in your own way

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