Short Friday

Posted by Deb | Day Trading Journey | Saturday 13 November 2010 9:52 pm

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Yesterday, on Friday, I didn’t really have time for trading. The Shabbat now starts early, not leaving me enough time to do much on Friday.

Yet I did want to try and fit in some trading. Since I am still doing it on the demo, I thought it is worth a try. I opened everything, and found a suitable resistance line. I put an order limit, and soon enough it caught. But the market ignored the resistance line and went up.

The was another resistance line close enough, so I put another short order there, and again it caught but the market continued up.

I had no patience, and no time, and the indicators seemed to show the market will go down soon, so I decided to wait. The market went up and up, and I added a third order, in an upper point. Again the market went up, but it seemed getting stuck ther. Had this been on live trade, with the size of my account now I couldn’t let this continue, but as it was on the demo I went on to my business around the house. I checked once or twice and saw it was still stuck there with the indicators indicating going down soon, and I went on.

Some time later, the market did go down. I checked and saw I was almost at no loss, so I went on preparing for the Shabbat. When I came back again the position turned into a winning one! First it was at $12.5, and not much later it was at $112.5!

I decided to be stubborn and wait till it got down to were my initial take-profit points were, but as it took more time and exited on one contract and had a $12.5 profit. The other 2 contracts were still winning, but not as much as I wanted.

I went on with my business, and some time later the position turned into loss again. When I last checked it was at -$37.5. As it was already almost Shabbat, I just turned off my platform and laptop (without even quitting the position – not really a good habbit, even if it was a demo!). I assume that had I had time I could have turned it back into a winning position, but as it was I had no time for it.

Moral of the story?

I don’t know. I guess many losing positions can turn back into winning ones when waiting long enough, especially when you add “averaging out” contracts as I have done. As my long-time readers know, I have made profit from such positions only a few months ago. But this is risky, and probably not a good habbit. When day-trading, it is better to cut the losses short and get into positions that become profitable shortly.

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