Friday, August 5, 2011

Long DUG at 34.50 and 33.02, sold at 33.69

Today was another mad day in the market, and I missed a chance to buy back some more DUG at less than what I sold it yesterday, since it opened low around 31.70.  But instead, I watch it fly up in a few hours to over 35.50, and I have to admit I was getting really agitated.  Not good. So at the first drop I got in, thinking that today was the capitulation day of the stock market and consequently DUG was going to move higher and higher.  But instead it moved lower.  I was glued to the chart. As it moved towards 33, I realized that ONCE AGAIN I had bought without any regards to MACD, which has been very reliable these days in indicating good entry points.  If only I had been paying attention to it! So once more I bought when MACD was giving short-term sell signals, and then relied on MACD-Hist to find an entry point for averaging down. I know. I averaged down by buying another lot at 33.02. Then I watched get even worse, because I WAS SUPPOSED TO WAIT FOR A BUY signal on MACD, which came later when DUG was around 32.50. Gut wrenching. NOT GOOD. Finally at around 3 PM there was a quick rally, which brought some relief because at this point I was bitterly regretting my impulsive actions and just hoping to get out even or with a minimal loss.

What I did wrong:
- everything
- no risk assessment before the trade
- no stops
- no attention to any technical indicators




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