Thursday, May 28, 2009

Up and Down and Up and Down

There's both strong support and strong resistance, but I think there's a strong overall upward bias. What I can tell you is that there's money to be made in the market trading. I just wish I was smart enough to be able to do it.

Thursday, May 07, 2009

Anatomy

Small upside, massive downside, that's my experience in the market. Why? Because I'm a dumb trader. Consider :



I enter the bearish position at the X. Why? I've already forgotten (inability to learn from mistakes). I recall having a chance to get out of the trade within 5 minutes with a small profit. I pass. Then, at the ? mark, I have another change for a small profit and pass again - thinking the upside is now huge as the chart looks very bearish. Then, you can see a huge rally - which took my losses into the $100+ region. I decide it's pointless to get out now because it would amount to buying the top. Plus, it looks like a climax top. I end up holding this position overnight. As you'll see, I eventually did get out a nominal profit. This gives you an idea of how crappy a trader I am.