Thursday, December 3, 2009

A real retail Trader

I had a great day today trade wise. Locked in some nice profits and got into 2 positions I would like to hold on to a bit longer. However, this lesson again goes to ALWAYS use stops no matter what it is you are trying to do.

I had entered SRS at the double bottom, as I had not traded SRS in a long time I realized that with such a low price, the moves are not always favorable for proper stop and scaling mechanisms as the bid/ask spread on such a low price etf will cost you quite a bit.

So I rolled into IYR as a short instead (smaller position and of course less leverage) but I also closed out SRS by hand. So lesson here - EVEN if you roll your capital into another position, do so by properly using sensible stops. As you can see straight line up after I had closed out by hand. Yes I am in IYR as well but it just goes to show that stops should ALWAYS be used ... again ALWAYS.

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