Trade Update: Sold HUN
Sold [[HUN]] @ $3.44 for +13.35% gain. I intend to revisit near $3, my original buy-point. Still think it has the potential to go to $5-6-8.
And as was mentioned in the comments, I sold SDS and KGC yesterday.
Still holding:
- long SSO (both covered call and stock are now in the black, I’m still experimenting so will let it ride some more)
- short AAPL, AZO, FSLR
What caused you to sell?
TSS,
the reason was twofold:
– Beat the Dart issued a “take profit” alert on this trade, with intent to revisit (following them on this trade, as I’d mentioned)
– Wanted to free up some cash – though it’s not much at all – as FSLR is making me nervous. Don’t want to get a margin call.
Hey, a few q’s por tu’:
1) IMHO, from my ‘life’s lessons learned’ file, do your own due diligence. You’ll come up the curve faster and in the end force yourself to learn from mistakes. If you are making your own trades, you have no one to blame or praise but yourself.
2) Again, IMHO, it probably isn’t too wise to be so deep in this market that you are fearful of a margin call. There are markets where being aggressive with OPM is fine, but certainly not this one. We are in a market that is experiencing historic levels of volatility and we are certainly not in a bull market. Why put yourself in that type of position?
Careful with your cash – in this business it’s your inventory. No inventory, no business.
Can I ask what size positions you are taking percentage wise and what your risk tolerance is per trade percentage wise as well?
1. Mmm, I have an excuse — I haven’t had time to research in the past 4-6 weeks (time-consuming work project ran longer than planned), so I started relying on others’ picks more.
Never blame anyone, because it’s still me pulling the trigger. And I never do it without checking the charts and news, but it’s true – I don’t check it as thoroughly if the tip comes from a trusted source.
2. Ouch, that’s really putting me on the spot!
I try not to exceed $15k for any one position. Regret when I go over that limit. FSLR right now, for instance.
re: risk – well, that depends. If day-trading, I’m very good at cutting losses. But these swing trades, this is what’s killing me this month. I take the drawdown for as long as possible. Since I trade volatile stocks, I assume (eventually, correctly) that they’ll come back to where I want them.
There are so many problems with my trading, it’s not funny. Monthly summary post usually outlines the problems – this month it’ll be a very long post.
I have to step back, analyze and re-draw the plan. It was going so well when I prepared the night before, took notes, compiled watch lists etc. Must get back to what was working.
Thanks for the jolt and keep it coming 🙂 Clearly, I need (constructive) criticism and help. Thank you for your time!