Friday, May 15, 2009

The Flip Side

Flip doh doh Flip! It should an automatic alert on my platform.. hm mm $ idea? OK how many times have you/I been there? Enough to know that it hurts when it does not register soon enough. Another missed opportunity as later I make note.. post its cover my desk.. somewhere there are others with the same observance of times past. Need something more: a pinch, needle, nudge, a slap.. take your pick; one day I'll wake up. I've smudged, I've cleansed, I've purged the demons that seem to invade my space and make me not see, but still they return at times most opportune. Dang it already!

Those that know of what I speak will sympathize and commiserate, but it's really not the solution. The idea is that we recognize soon enough a trend change and correct our positions fast enough to take advantage. Take for instance POT today. I've worked with this chart a couple of weeks. I've plotted, I've planned and set targets I've done what is required for discipline and I've been successful. I've also noted in my head that a pullback is inevitable in the markets and on this equity that has such a superb run. Today it hit target #3 ($109.00) and ran beyond which I prefer for it tells me I got out at a strong position and I can asses for re-entry on a pullback. The pullback is an opportunity for a short isn't it? No, it's not always. Pullback can be brief and with a strong stock can whip one out in an instance; and it's trends we look for and not the instant glory.

Shorts have to be plotted just as much as long positions are, which I did and saw the opportunity but did not act. This chart is the catalyst for this commentary today: http://www.twitpic.com/58o69 . The arrows and my thoughts I added for emphasis here but the lines were drawn long before the resulting candlesticks on this 15 min chart .* Yet, I did not partake.. I did not act and therefore lost out on two very nice short trades, indeed.

I don't care how good you are, your disposition makes a difference as to when and how you notice an opportunity for a trade and how fast you react. I am an optimist and I have a preference for the positive; in other words I like to go long. Maybe I should call myself an Upsidetrader but, alas, that name is taken on Twitter and StockTwits by a very good trader indeed, who happens to like the short side. Go figure.

Nevertheless, I will continue to post my post its, continue to hone my observations and perhaps hire someone to pinch me at those opportune times. Then again, I could just enter my trade on the platform and let it go.. but ouch.. there's the other glitch in my psyche! Who is in control?

More than likely the answer is that we just have to let go and trust ourselves even on the downside. The psychology of the negative is that there is no negative; put that on a post it!

Happy Trading

http://www.twitpic.com/58o69

* Please note that the time frames on the bottom of the chart are Pacific Zone and the Price Box is Atlantic Zone.)

1 comment:

Anonymous said...

How about calling yourself Downsidetrader then since you like the long side? ;)