This Looks Like Panic To Me
Picked up 100 GS @ $160.86 and 100 QLD @ $83.15
Wow. That was quick. Stopped out on both QLD @ 81.75 and GS @ 158.09.
***Update*** That really hurts. Those stop outs had me miss a 10 point move in GS and a 3 point move in QLD. Ouch.
***Update*** Well I got back in the office to find the indexes trying to go green. I jumped back in GS 100 @ $169.17 and QLD 100 @ $84.97.
I'm holding both of them overnight. I'm about ready to throttle myself for setting my damn stops so tight on the earlier trades.
I'm expecting a bounce here. Nothing more. I think, as I've said for two weeks now, that this type of sell-off is not going to V-bottom back into new 52 weeks highs. There is likely more downside, and at the very least, consolidation, before any kind of sustained move upward. The fact that I didn't short this down on the last bounce has really pissed me off, as that was what I had planned to do, and didn't. I'm going to try and catch a bounce here or sacrifice another 500 bucks or so trying.
8 comments:
You had the right idea but the wrong stop with the current market volatility. I sold a few trades at the bottom thinking this was going to be another -400 day. Oh well, live and learn.
Yeah, I set the stops that way in case it was a 400 point day.
If I can catch at least a small bounce tomorrow, I'll recoup my losses.
I have found that setting stops on those leveraged ETfs is a difficult thing. You really have to be ready to endure a painful unrealized loss. I'm still have trouble myself. Got long on the leveraged ETFs near the close as well.
I was stopped out as well with the headfake drop at the end of the day, having bought 10000 mvis at 4.54. a dime was all I could endure. Perhaps a bit too heavy a purchase.
Why not go without a stop and set up a close profit taking stop that will probably get hit with the volatility. Use daily and weekly pivot points.
Can't really blame you. However, with such a small share amount, you should leave some more room.
Yeah, all good suggestions.
What messes me up is trading at work. When I initially put on the trade, I'd had all of like 2 minutes to look at quotes. So I see what looks like panic, and want to buy, but I also know that I may not be able to get back to the computer for a couple of hours. I should have taken more time to really think about what level of risk I was willing to accept, and how much farther the markets could conceivably fall after falling so far already. Instead I was thinking about pivot points and the LODs.
You should invest for longer periods of time then, utilizing dollar cost averaging.
Also, you can write calls against your positions, in order to generate income.
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